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Payment Terms
Milestone Payment
Definition
Payments made upon completion of specific project phases or deliverables.
Overview
Milestone payments break large projects into smaller payment stages tied to deliverables. This reduces risk for both parties and maintains cash flow.
Example
A website project with milestones: 25% at contract signing, 25% at design approval, 50% at launch.
Best Practices
Define clear milestones and deliverables. Get written approval at each milestone before proceeding.
Common Mistakes to Avoid
Vague milestone definitions
Not getting sign-off
Milestones too far apart
Frequently Asked Questions
How many milestones should a project have?
3-5 milestones is typical. More for longer projects.