How are partial advances and payments manage?

Handle advances and partial payments in public tenders ... Uff, key topic if you do not want to end with financial headaches or, worse, with the company in the hole. Look, this is not just paperwork: knowing how this story works can be the difference between surviving or seeing how the money escapes.

We go in parts. The famous advance, that money that is released before starting the contract. Basically, the entity gives you a wool so that you do not drown buying materials or tools before even putting the first nail. Sometimes it is a percentage of the contract, other times it is a fixed amount ... it depends on the humor of the contract, you know.

And then there are partial payments. These are like Checkpoints in a video game: you get to some progress, you deliver something, you charge. There is no mystery, but rules: everything has to be very clear in the contract. When they will pay, how much, and under what conditions. If not, then or how to claim if the crazy people are made.

Of course, do not believe that everything is to receive and now. They will usually ask you for guarantees for the advance. Here the bonds, policies, credit letters ... whatever is necessary for the entity to feel sure you will not disappear with your money. Spoiler: If you do not meet, they make it tired to return the advance. So beware of that.

Follow-up? Mandatory! It carries your accounts well, separate the money from advances and partial payments, make your schedule and, above all, check the milestones. If you miss one, forget about payment, and there ... cries.

I almost forget: taxes. Do not get emotions with the money that comes because Hacienda does not forgive. Many advances and partial payments consider them entry as soon as they arrive, so prepare to release something to the treasury.

In summary, if you want to play in the big leagues of public procurement, you have to know how to move with partial advances and payments: leave everything in writing, prepare to support what you receive, carry your controls up to date and do not let taxes grab you in curve. If not, better or mess.