The contract
It pays a chunk at each milestone, once the client accepts what's due.
Kofi's journey · Commercial · Story 5
Paid on acceptance
Payment is tied to accepted deliverables. Ours keep coming back rejected, so the cash is held.
The wrong way
The forecast
Kofi's cash-flow forecast assumes the money arrives on the milestone date. Nobody mentioned acceptance.
BuildBuild: Milestone 2…
Milestone 2
The design package goes to the client. Rejected: wrong file names, two models missing.
Resubmitted
Fixed and sent again. Rejected again: a different reviewer with different comments.
BuildBuild: Six weeks later…
Six weeks later
It's accepted. The money arrives six weeks late.
Finance
Finance asks Kofi why the job is £400,000 overdrawn. Kofi: "Because a file name was wrong." Finance doesn't laugh.
A wrong file name held up £400,000.
Find out what Kofi should have doneKofi's Lesson 5 · Paid on acceptance, then the same story done the right way.