Progress payments are made to assure acceptable performance and progress on a contract.

Progress payments are made to assure acceptable performance and progress on a contract.

• A. Progress payments
• B. Advance payments
• C. Partial payments
• D. Milestone payments

Answer: (A)

Progress payments are payments made during the course of a contract as work is completed. They are designed to keep the project moving by providing funds when tangible progress has been achieved, rather than paying all at once or only after completion. These payments are typically certified by the buyer or an inspector to reflect the value of work performed and may be subject to retention until final acceptance. This setup helps ensure acceptable performance because it ties funding to actual progress and verification, giving both sides ongoing assurance. Advance payments are money paid before any work begins and can increase the buyer’s risk if the contractor does not perform. Partial payments are payments for portions of work but aren’t necessarily tied to a structured progress or verification process. Milestone payments are a common form of progress payments, tied to reaching specific deliverables, but progress payments as a concept cover payments as work progresses and are not limited to milestones alone.

Progress payments are payments made during the course of a contract as work is completed. They are designed to keep the project moving by providing funds when tangible progress has been achieved, rather than paying all at once or only after completion. These payments are typically certified by the buyer or an inspector to reflect the value of work performed and may be subject to retention until final acceptance. This setup helps ensure acceptable performance because it ties funding to actual progress and verification, giving both sides ongoing assurance.

Advance payments are money paid before any work begins and can increase the buyer’s risk if the contractor does not perform. Partial payments are payments for portions of work but aren’t necessarily tied to a structured progress or verification process. Milestone payments are a common form of progress payments, tied to reaching specific deliverables, but progress payments as a concept cover payments as work progresses and are not limited to milestones alone.