Progress Billing: A St. Louis Contractor’s Secret Weapon

Hey there, fellow builders and visionaries of the St. Louis construction scene! Braden Hallman here, your friendly neighborhood bookkeeper with a passion for helping contractors like you keep your finances as solid as the foundations you lay. Today, we’re diving into the world of progress billing – a topic that might sound as dry as cement, but trust me, it’s the lifeblood of your cash flow.

The Day I Learned the Hard Way

Picture this: It’s 2015, and I’m knee-deep in invoices for a massive commercial project downtown. The client’s happy, the work’s on schedule, but there’s one tiny problem – we’re hemorrhaging money faster than a leaky faucet. Why? Because we hadn’t mastered the art of progress billing.

That wake-up call led me on a journey to crack the code of effective billing practices. And let me tell you, it’s been a game-changer for every St. Louis contractor I’ve worked with since.

The ABCs of Progress Billing

Now, I know what you’re thinking. “Braden, cut to the chase. How do I make this work for my business?” Well, buckle up, because I’m about to drop some knowledge bombs that’ll revolutionize your billing process.

1. Break It Down

First things first, divide your project into manageable chunks. Think of it like building a house – you wouldn’t try to do it all in one go, right? Same principle applies here. Break down the work into phases or milestones that make sense for your project.

2. Get It in Writing

Listen, I’ve seen more handshake deals go south than I care to count. Get your progress billing schedule in the contract, clear as day. It’ll save you headaches (and potential lawsuits) down the road.

3. Be Consistent

Set a regular billing cycle – whether it’s weekly, bi-weekly, or monthly. Consistency is key, folks. It keeps your cash flow steady and your clients happy because they know what to expect.

The St. Louis Twist

Now, here’s where we put a little Gateway Arch spin on things. St. Louis has its own unique construction landscape, and I’ve picked up a few tricks along the way that work wonders for local contractors:

• Factor in our wild weather swings. We all know St. Louis can’t make up its mind when it comes to weather. Build some flexibility into your billing schedule to account for those inevitable delays.
• Get cozy with local suppliers. Building strong relationships can lead to better payment terms, which means you can offer more competitive progress billing to your clients.
• Know your neighborhoods. Billing practices that work in Clayton might not fly in South City. Tailor your approach based on where you’re working.

The Tech Touch

Look, I’m no tech wizard (just ask my kids about my struggles with the TV remote), but even I’ve embraced the digital age when it comes to progress billing. There are some killer apps out there that can make your life easier:

• QuickBooks for Construction
• Procore
• CoConstruct

These tools can help you track progress, generate professional invoices, and even integrate with your accounting software. It’s like having a mini-me doing all the grunt work!

The Human Touch

Now, here’s the secret sauce that ties it all together – communication. All the fancy software in the world can’t replace good old-fashioned relationship building. Keep your clients in the loop, be transparent about progress, and don’t be afraid to pick up the phone if something’s off track.

I once had a client who was notoriously late with payments. Instead of playing the frustrated bookkeeper, I invited him out for a beer at Urban Chestnut. Over some Schnickelfritz, we hashed out a payment plan that worked for both of us. Sometimes, you’ve got to get creative (and a little hoppy) to solve problems.

Wrapping It Up

Alright, St. Louis contractors, there you have it – my not-so-secret playbook for mastering progress billing. It’s not rocket science, but it does take some practice and a willingness to adapt. Remember, every project is unique, just like every client. Stay flexible, stay communicative, and most importantly, stay on top of your billing game.

If you’re feeling overwhelmed or just want to chat more about how to optimize your billing practices, drop me a line. I’m always up for talking shop over a slice of Imo’s or a concrete from Ted Drewes. After all, that’s the St. Louis way – we take care of our own.

Until next time, keep building, keep billing, and keep making our city beautiful, one project at a time!