What is the best method of linking payment to actual site progress?

Question

What is the best or preferred method for contractor or subcontractor monthly payments to be made, which are linked to the actual on-site progress?

What are the advantages of your selected method?

Andrew Lowe · Accepted Answer

I assume that you are referring to a lump sum type of contract ? - from my perspective there are 2 methods of linking payment to progress - the first is to ensure that you have a detailed Contract Sum Analysis with a detailed preliminary build up, the second is to agree a 'white card' style system that many house builders now utilise - this involves agreeing the split on the Contract sum into discrete elements and then paying once that element is fully complete, depending on the package the level of detail could be as small or large as you wish - for example in Stud Partitions you may want to split the price down into elements such as installation of track, boards to 1 side, boards to the other side & then tape and joint - you could also put a value to the final QA or O&M Manuals.

What is the best method of linking payment to actual site progress?

Payment

recording-progress

site

Hardip Ghattaora

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