Monday, April 8, 2013

14 Ways PMs Can Generate Cash Today

1. Start asking for cash up front on all small jobs (fees under $10,000) and do not credit the client until the final invoice.

2. Send statements and invoices at different times each month.

3. Send separate invoices for reimbursables and fees to avoid a $50,000 payment being held up over a $3.21 phone charge dispute.

4. Call clients seven days after sending an invoice. A friendly call always hastens payments.

5. Send self-addressed envelopes so clients won’t have to do their own.

6. Attach a sample copy of your invoice to every contract so clients aren’t surprised.

7. Make collections part of the project manager’s job.

8. Preprint an interest clause on each invoice even if it is not in your contract. Visibility counts.

9. Weight the front end of contracts more than the back.

10. Pay payables only when they are really due, but don’t jeopardize relationships by paying late.

11. Offer small discounts on government and institutional work. Most clients are mandated to pay
discounted bills first.

12. Stop work for non-payment if you have the right to do so contractually.

13. Do not stamp drawings until all client bills are fully paid.

14. Simplify hourly work. One architect charges a flat per hour fee no matter who is working on the job, including drafting and secretarial personnel.

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