Getting paid faster: deposits, early-pay discounts and stored materials

These tactics come from the field. None of them will work with every GC — but asking costs nothing, and each one that lands shortens the gap from the cash flow lesson.

Ask for a deposit — twice

First, on every proposal

State your terms plainly: for example, 30% deposit on award, balance per the project's progress billing schedule, or deposit, balance due on completion on smaller jobs. Most GCs won't read it closely at bid time, and their subcontract will usually replace it. That's fine — your terms are on the record, and they set up the second ask.

Then directly, before the job is final

The moment that matters is when the GC is ready to award and talking to you directly — the scope review, or the call confirming you're its flooring sub. Ask again:

“Before we finalize — our proposal was based on a deposit on award, with the balance on your normal pay schedule. Can we write that into the subcontract?”

They'll say yes, no, or counter. A counter might be a smaller deposit, a deposit on material only, or paying your first application early. Any of those beats nothing — and a GC that has already chosen you rarely walks away over a reasonable request.

How does an early-pay discount work?

Offer a discount — 5% or 10% — if the GC pays a deposit or pays your applications early, for example within 10 days of approval instead of on its normal cycle.

The key is to build the discount into your price from the start. Take the discount and you're at your normal price, paid sooner. Don't take it, and you earn a premium for waiting on a slow-paying job. Just do the math right — the discount comes off the quoted price, not your normal one.

Can you bill for stored materials?

If flooring is delivered and stored before it's installed, many contracts let you bill for it as materials presently stored — a column on the standard AIA G703 continuation sheet. That can bring material money forward by a billing cycle or more. Conditions usually apply; expect some combination of:

• Supplier invoices or a bill of sale showing the material is paid for or owned
• Secure storage on site, or an approved and insured off-site location
• Proof of insurance covering the stored material
• Photos, and sometimes inspection by the GC or architect
• A lien waiver from your supplier

Retainage is usually withheld on stored materials too. Check before ordering: some contracts don't allow stored-material billing at all, or only with written approval first.

Why front-loading backfires

It's tempting to put extra value on early schedule of values lines, like mobilization, so early billings are bigger. GCs and architects look for this and may reject the schedule of values — delaying your first payment and costing you trust. A mobilization line that reflects real early costs (submittals, bonds, insurance, initial material handling) is normal. An inflated one isn't.

Get it in writing

Whatever you negotiate — a deposit, an early-pay discount, stored-material billing, a faster pay cycle — make sure it's written into the subcontract or a signed amendment. An estimator's verbal yes doesn't bind the GC's accounts payable department.