Getting paid by institutions.
WHY IT IS DIFFICULT
Approval chains are long, documentation requirements are strict, and budget cycles affect timing.
WHAT TO ESTABLISH BEFORE ACCEPTING ANY CONTRACT
The payment terms The approval process Realistic expectations of timing, from others' experience
WHY FROM OTHERS
Stated terms and actual practice differ.
WHAT TO CALCULATE
The funding requirement across the contract.
WHAT TO ESTABLISH
Whether you can fund it without endangering the rest of the business.
WHAT DELAYS PAYMENT
Incomplete documentation Approvals pending Budget availability Disputes about quantities or quality Administrative process
WHAT TO DO
Submit complete claims, immediately when due.
WHAT TO CONFIRM
Receipt, and where the claim is in the process.
WHY
Claims stop at specific points and they must be pursued there.
WHAT TO ESTABLISH
A contact in the finance function.
WHAT TO TRACK
Claims submitted, certified and paid Days outstanding at each stage
WHY BY STAGE
It identifies where the delay actually is.
WHAT TO AVOID
Assuming certification means imminent payment Taking further contracts while heavily unpaid Funding the work by not paying your own suppliers
WHY THAT LAST POINT
It transfers the problem and it destroys your supply base.
WHAT TO NEGOTIATE WHERE POSSIBLE
Advance or mobilisation payment.
WHY
It funds the start rather than your reserves.
WHAT TO ESTABLISH ABOUT RETENTION
How much is held, and when it is released.
WHY
Retention released only after a defect period is capital tied up for a long time.
