Payment terms in the IT industry

Hello all,

I’d like to know everyone’s take on the topic of payment terms within the IT industry. Presently we’ve been approached by a client who has proposed a 12 month contract, with payments made every 3 months (first payment after 3 months of work). It’s quite a large project, requiring a team of 8 people. There’s unfortunately no room for negotiation on the terms with this client. We’re not used to working on these terms. Normally we state 30% down-payment, with the remainder spread across the development time-frame coinciding with milestones.

I’m interested to hear from people who have been in a similar situation before, and if so how you reduced the risk at your end.

Cheers.