Paying a software project in installments

In short: 40% advance before work starts, 30% midway, and the rest before final delivery. The parts must add up exactly.

Paying everything upfront is risky for the client. Paying everything at the end is risky for the developer. Installments share the risk.

My standard split

• 40% advance, before work starts. It reserves the time, and work begins once it is paid.
• 30% midway, at an agreed point such as a working version ready to review.
• The final 30%. When it is paid, the full amount is in and final delivery follows.

Some projects use a different split, or fixed amounts instead of percentages. Whatever is agreed is written on the quotation and the invoice before work begins.

How the numbers are kept honest

• The parts must add up to the invoice total exactly. If they do not, the invoice cannot be issued.
• Each installment has its own due date.
• Whether an installment is paid, partly paid or overdue is worked out from the payments actually recorded. It is not typed in by hand, so it cannot drift from reality.
• A payment can never be larger than what is still due.

What you see as a client

In your account you can see the invoice, each installment, what has been paid and what remains. You can download the invoice as a PDF at any time.

If a due date does not suit you, tell me before it passes. Moving a date is easy to arrange in advance and awkward afterwards.