We've used progressive milestone billing on every landed project since 2016. Instead of asking for large upfront payments or waiting until job completion, we bill when we hit specific construction milestones. This approach emerged from hard experience — we've seen too many projects derailed by cash flow problems on either side.

How milestone billing works in practice

Our typical landed A&A or reconstruction project has 6-8 billing milestones tied to actual construction stages. The first payment comes after we complete site preparation and any required demolition work. The second follows foundation completion and structural inspections. Subsequent milestones align with structural frame completion, roof installation, mechanical rough-ins, and final inspections.

Each milestone represents roughly 12-15% of the total contract value, though some stages like structural work may be weighted higher due to material costs. We never bill more than 20% upfront, and we never ask for final payment until you've had time to inspect completed work and we've obtained all necessary approvals.

The exact milestones depend on your project scope. A full reconstruction has different checkpoints than an A&A extension. But the principle remains: payments follow completed, inspected work that moves your project measurably forward.

Why this protects both parties

We learned this system the hard way. In our early landed projects, we tried traditional payment schedules — large deposits, mid-project payments, final settlement. This created problems. Homeowners worried about paying for work not yet done. We worried about cash flow gaps during material-intensive phases.

Progressive billing solves both concerns. You're never paying significantly ahead of work completion. We're never carrying excessive project costs without compensation. When structural steel arrives on site, we've already been paid for the foundation work that enables that delivery.

This alignment matters especially on landed projects where material costs can spike unexpectedly. Structural steel prices, for instance, can shift 15-20% between quote and delivery on longer projects. With milestone billing, these adjustments get addressed as they occur rather than creating disputes at project end.

Cash flow benefits during construction

Landed builds involve significant material procurement well before installation. Structural steel gets ordered months ahead of erection. Mechanical systems require long lead times. Under traditional billing, builders often finance these materials entirely from working capital.

Milestone billing spreads this burden more reasonably. When we complete foundation work, that milestone payment helps fund the structural steel that arrives for the next phase. When structural work is done and inspected, that payment supports mechanical system procurement.

For homeowners, this creates more predictable cash flow planning. Instead of scrambling for a large mid-project payment, you can plan milestone payments around your own financial timeline. Many clients coordinate these with property refinancing or other funding schedules.

Milestone documentation and inspections

Every milestone requires documentation before billing. Foundation milestones include structural engineer inspections and any required BCA approvals. Structural milestones include progress photos, material certifications, and QP sign-offs where required.

We provide detailed milestone completion reports that become part of your project record. This documentation proves valuable later for warranty claims, future renovations, or property sales. It also ensures we're both aligned on what constitutes milestone completion before any payment requests.

Some milestones require statutory inspections — foundation inspections for certain soil conditions, structural inspections for load-bearing modifications. We don't bill these milestones until inspections pass. This protects you from paying for work that might need correction.

Adjusting milestones during construction

Not every project proceeds exactly as planned. Weather delays foundation work. Material shortages affect structural timelines. Design changes alter scope mid-project.

When this happens, we adjust milestone schedules accordingly. If foundation work extends due to unexpected soil conditions, we don't automatically trigger that milestone payment until the work actually completes to specification.

Similarly, if you request design changes that add scope to a particular phase, we discuss how this affects milestone definitions before proceeding. The goal is maintaining the alignment between payments and completed work, even when project scope evolves.

How much do you typically require upfront?

We typically ask for 10-15% to cover initial mobilisation, permits, and site preparation materials. This covers our actual costs to start work but doesn't put you significantly ahead on payments.

What happens if a milestone fails inspection?

We don't bill until inspections pass. If remedial work is needed, that's our cost and responsibility. The milestone payment waits until the work meets specification and required approvals.

Can milestone schedules be customised?

Yes, within reason. If you need to coordinate payments with refinancing or other funding, we can often adjust milestone timing to match your requirements while maintaining the connection to actual work progress.

Do you offer any payment terms on milestone invoices?

Standard terms are 14 days from milestone completion and invoice. For larger milestones, we can sometimes extend this to 21 days if discussed upfront, but we prefer to keep payment cycles aligned with our own material procurement schedules.

What documentation do we receive with each milestone?

Each milestone includes progress photos, material certificates where applicable, and any statutory inspection reports. For structural milestones, this includes QP sign-offs. You receive both digital copies and physical files for your records.

This billing approach has worked well across our landed projects because it aligns incentives properly. We're motivated to complete each phase properly since payment follows completion. You're protected from paying ahead of actual progress. If you'd like to discuss how this works for your specific project, we're happy to explain the milestone structure during initial consultation.

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