Credit control for engineering firms means billing long projects by milestone, getting variations approved in writing, tracking retentions, and chasing invoices from the moment they fall due. Engineering work often runs for months before completion, so staged payments and automated reminders stop the firm funding clients' projects from its own cash.
Engineering businesses cover a wide range of work: mechanical and electrical design, structural and civil consultancy, precision manufacturing, fabrication and maintenance contracts. What they share is long projects, specialist labour and significant upfront costs.
When payment only arrives at the end of a project, or at irregular intervals, engineering firms can be profitable on paper but short of cash. This guide explains how UK engineering firms can structure billing and credit control to keep money flowing throughout a project, from the first design drawing to final commissioning.
Never bill long engineering projects only on completion.
Link milestones to deliverables you control where possible.
Get every variation priced and approved before starting.
Track retentions and chase each release as its own invoice.
Check whether Construction Act payment rights apply to your work.