16) The Federal Acquisition Regulations (FAR) require a government contracting officer to make prompt
progress payments after receiving a contractor's invoice for work completed.
To address this problem, the government often uses a financing arrangement on fixed-price contracts called
progress payments.
Developers intending to use off-the-plan sales to finance projects will be keen to include
progress payments by buyers under their purchase agreements as permitted by the Off-the-Plan Regulations.
However, the PC manufacturer incurs substantial costs prior to this first
progress payment, largely exceeding the advance payment amount: The engineering costs related to designing the development's concept design, securing its approval as well as drafting the shop drawings; the cost of material procurement necessary for the manufacturing process; The plant operating costs; the site delivery costs to shift the PC elements from the manufacturing plants to the construction site; and the site assembly costs.
This will enable Mutiny to fully inform investors of the progress of its ongoing exploration program and to provide the board with the time to consider all funding alternatives prior to making the A$4m
progress payment.
Stolt Tankers made a total of USD296m in
progress payments to SLS towards the eight ships.
If the amounts are sizeable and/or the creditworthiness and character of the other party are unproven or questionable, consider requiring a deposit/ down payment and/or require
progress payments as you incur cost and/or fulfill your end of the bargain.
Unusual
progress payments or other billing concerns
The company will recover around USD19m of
progress payments, and the acquirer will assume the remaining payment obligations of around USD22m of the company related to the equipment.
Construction contracts generally embody a unique and complicated system of payment for work completed, consisting of
progress payments coupled with retainage.
4 million in government contracts and then authorizing more than US$1 million in
progress payments, despite little or no work having been performed.
We ask for 20% to 25% down, then collect
progress payments at the beginning of each stage of the job.
