Pool Construction Draws and Down Payments

Draws and down payments are a very large and important part of a construction project. The way a pool installer sets up draws should be carefully considered. It is important that neither the pool builder nor the client is ahead or behind the other. Otherwise, it could end up creating a hostage situation. If a pool contractor is not good with finances, they may be cash flowing other jobs with YOUR money and at some point be unable to complete jobs. You don't want to be the last one when the music ends. It happens A LOT.

We cash flow our jobs very pricelessly and fairly. We have separate draw schedules for EACH scope of work based on what the scope actually cash flows at a given phase. For example, the auto cover requires a 50% down payment because that's about what we will put down to the factory to have it manufactured. The pool shell is very similar. 20% is what the factory requires to have the shell started. We ask for what we are cash flowing. On the other hand, we ask for 10% of the concrete scope because we have much less outlay of cash IN THAT scope of work.

In the attached draw schedule you can see just how all the scopes cashflow out. In most situations we are installing so quickly, these milestones end up being just a handful of payments. Once we begin construction, it goes quickly. We still want it to be clear and fair about what work and scopes are worth. I don't want to be ahead of you, and I don't YOU to be ahead of us. Is this more work on our part and maybe yours? Perhaps, but the cash needs to flow as the job flows. It's the right way.

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