progress payments

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Progress payments

Periodic payments to a supplier, contractor, or subcontractor for work as it is completed as desired, in order to reduce working capital requirements.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Progress Payments

The act or practice of paying a contractor in installments as different stages of work are completed, rather than providing a single lump sum at the completion of the project. Progress payments reduce the client's working capital needs for the project.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

progress payments

a contractual arrangement common to large construction projects whereby payment for work done is made at predetermined stages along the route to completion.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

progress payments

Payments to a contractor or developer based on the stage of completion of the project.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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Investigation of Approximate Cost and Progress Payment in Forest Road Construction Process, Kastamonu University Journal of Forestry Faculty 15 (1): 6-14.
(161) The official faces a "task of balancing the Government's interests in proceeding with the contract, against possible harm to the surety." (162) Under Balboa, before making a contractually obligated progress payment, the government official must assess not only the status of the project (Factors 2,6), but also the contractor's mental state (Factor 1), the status of subcontractors with whom the government has no contractual relationship (Factor 5), and also the likelihood that another contractor could replace the current one at below cost (Factor 8), among others.
There is no reason that the changes to the progress payment rate and the liquidation must be symmetrical.
This article will discuss the pros and cons of PBPs and when the use of PBPs should be considered, as well as compare and contrast use of PBPs with use of progress payments based on costs.
Interest on late invoices or progress payments are due automatically and must be included and noted in the government agency's payment.
Amirul Imran said he then prepared in March 2012 a circular paper for the KWAP investment panel to approve the change in payment of the RM2 billion from 'progress payment' to 'one lump sum' to SRC International, according to the results of the KWAP CEO's discussion with the prime minister.
In July 2010 Mutiny executed a farm-in agreement with Redhill to acquire a 100% interest in the Gullewa tenements through a series of progress payments.
State agencies, with the exception of the Arkansas Highway and Transportation Department, withhold ten percent of the progress payments as retainage until the project reaches fifty percent completion, and not withhold any additional retainage after that time.
The court ruled that settlement discussions occurring after the contractor unequivocally notified the authority that it considered the contract terminated based upon the authority's failure to make progress payments did not establish that the contract was still in force; discussions were merely an attempt by parties to work out a settlement of claims that would avoid litigation, and it was never contemplated that the contractor would return to complete work.
An owner may wish to utilize a general contract which specifically addresses the form and content of lien waivers and releases to be used by the general contractor, all subcontractors, and suppliers in conjunction with the submission of progress payment and final payment applications on the job.
Now, there are only two methods for contractors to submit progress payment requests: WAWF and paper.
Courts typically view the subcontractor as owning the materials until installation, but the owner may require a transfer of title when the subcontractor receives a progress payment for them (but still has not installed them).

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