PROGRESS PAYMENT RATES Clause Samples

The "Progress Payment Rates" clause defines how and when payments are made to a contractor or service provider based on the completion of specific portions of work. Typically, this clause outlines a schedule or percentage of the contract price to be paid upon reaching certain milestones or after the completion of defined stages of the project. For example, a contractor might receive 20% of the total payment after finishing the foundation, with subsequent payments tied to further progress. The core function of this clause is to ensure that payments are aligned with actual work performed, thereby managing cash flow for the contractor and reducing financial risk for the client by only paying for completed work.