Milestone Payment
/ˈmaɪlstoʊn ˈpeɪmənt/
Definitions
- (n.) A payment made upon the achievement of a specified stage or event in a contract or agreement, often used to manage risk and incentivize performance.
The contractor received a milestone payment after completing the foundation of the building.
Forms
- milestone payment
- milestone payments
Related terms
See also
Commentary
Milestone payments are key in phased contracts to align payment with project progress and reduce financial exposure.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.