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Payment Terms
Progress Payment
Definition
Payments made at regular intervals based on the percentage of work completed.
Overview
Progress payments are common in construction and long-term projects. They're based on the percentage of work done rather than specific deliverables.
Example
A construction contract with monthly progress payments based on certified completion percentages.
Best Practices
Document work completed at each billing period. Use standardized forms for verification.
Common Mistakes to Avoid
Over-billing progress
Poor documentation
Not verifying work completed
Frequently Asked Questions
How is progress measured?
Usually by percentage of total work completed, verified by inspection or documentation.