By CEDIA - Thu, Oct 9, 2025 - Blog
Payment structures in the smart home world have always been a challenge. No two projects are the same, and yet integrators need to ensure they’re covered, financially and contractually, from day one through to final sign-off and project completion. So how do you strike the right balance between flexibility and protection?
To find out, Home Tech Pro sat down with Peter Aylett, a partner at Officina Acustica, and Nick Moore, a senior project manager at Link Media Systems.
Every Project is Different
“Every project is different,” Peter explained. “It depends how much design is needed, how long the job will run, and what the risks are. We rarely use the same payment plan twice.”
That said, there are principles that can guide integrators when it comes to the threats involved with construction project completion. The most important? Manage your risk. Peter was blunt: “A payment structure must be set up so that if a client doesn’t pay, your company doesn’t go under.” That means you need to cover all your costs in earlier stages, even if profit comes later or not at all.
“If something goes wrong, whether it’s the client losing their job, a builder walking off site, or an unexpected delay, you should be able to say: ‘We’re annoyed we didn’t make money but we’re not going to go out of business.’”
One memorable piece of advice Peter received years ago was to never take on a project worth more than 15% of your annual turnover. “If the job collapses, it won’t take your whole company with it,” - highlighting just how crucial project completion is to the construction and smart home industry. Want to uncover more finance related tips? Learn how to generate recurring revenue for your smart home business.
Nick pointed out that most project failures aren’t about poor workmanship or lack of demand, they’re about cash flow. “Good businesses go under simply because the money didn’t arrive on time,” he said.
That makes your payment schedule a financial lifeline, not just a formality. “You have to model your predicted cash flow for the entire job and align your payment schedule accordingly.”
Unsure of whether a customer is right for you? If a client pushes for a schedule that exposes you to too much financial risk, as Peter says, this is a red flag. He suggests that you put red lines in place early in the sales process. If a client refuses reasonable terms, walk away.
“There are two ways to make money,” Peter said. “One is to make money. The other is to not lose money.”
A recurring challenge is that final, post project completion payment—this is the one that clients sometimes withhold, citing minor issues or unresolved snagging. How do you deal with that? Nick acknowledged it’s a common headache. The key, he said, is communication and documentation.
A CEDIA membership means exclusive access to a range of industry events and online resources. Want to learn more about project completion, management and more? Become a CEDIA member today and unlock your business’ full potential.
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