Contract Proposal Template for Software and IT Services
A software and IT services contract proposal is a structured document that outlines the scope, pricing, timeline, and legal terms of a potential tech project.
Milestone payment schedule
A milestone payment schedule is a financial agreement in which payments are made incrementally as specific project milestones or deliverables are achieved. This structure helps manage cash flow and ensures progress by tying compensation to the completion of defined stages within a project.
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9 Milestone payment schedule examples
- Description
Milestone Payment Schedule. The Research Project Awardee shall segregate and track all Research Project costs separately and shall document the accomplishments of each payable milestone under each Research Project Award. Acceptance of Milestones shall be contingent upon approval from the Government’s Sponsor Office Technical Representative (SOTR) detailed in Clause No. 11 Technical and Administrative Representatives. Milestone payments will be paid in the amount indicated in the attached Milestone Payment Schedule (Attachment A).
- Description
Remaining Contract Value $28,063,210 WO 003 is funded in accordance with the Milestone Payment Schedule and Criteria in Appendix A.
- Description
As consideration to the EPC Contractor, Tri-State will pay the EPC Contractor $195,611,863.00, which payment will be made over time in accordance with a milestone payment schedule. The first payment is due when Tri-State issues the notice to proceed.
- Description
Progress Payments. Payment will be made in installments (each a “Milestone Payment”) upon completion of the milestones for the performance of the Work as set forth in Exhibit B-3 (the “Milestone Payment Schedule”). After any Initial Payment, Seller will submit a Disbursement Request to NorthWestern requesting payment upon the satisfaction of each milestone set forth in the Milestone Payment Schedule. NorthWestern will pay each Disbursement Request within thirty (30) Days of confirmation of satisfaction by Seller of the applicable milestone. In the event of a dispute regarding an invoice, NorthWestern shall pay the undisputed amount to Seller pursuant to the terms of this Contract and NorthWestern shall further notify Seller of the amount(s) in dispute and the basis for the dispute. When the billing dispute has been resolved, NorthWestern shall pay the amount owed within ten (10) Days of the date of such resolution.
- Description
Promptly following the expiration of the Review Period and, if applicable, the Resolution Period, pursuant to Section 1.7(b)(iii), the Securityholders’ Agent shall deliver or cause to be delivered to Acquirer an updated spreadsheet setting forth each Company Securityholder’s Milestone Pro Rata Share of such Milestone Payment and the amount of cash and number of shares of Acquirer Common Stock payable to each Company Securityholder and the Unpaid Company Transaction Expenses with respect to such Milestone Payment (such updated spreadsheet, the “Milestone Payment Schedule”); provided, that the aggregate amount of such cash and shares of Acquirer Common Stock (valued at the Applicable Acquirer Stock Price) payable to the Company Securityholders shall not exceed the applicable Milestone Payment. Acquirer and the Exchange Agent shall be entitled to rely on the Milestone Payment Schedule without any investigation and none of Acquirer or any of its Affiliates shall have any Liability whatsoever with respect to any such calculations in the Milestone Payment Schedule. Acquirer shall pay, or cause to be paid by the Exchange Agent or Surviving Corporation, to the Company Securityholders in accordance with their respective Milestone Pro Rata Shares (as set forth in the Milestone Payment Schedule) any Milestone Payment owed to the Company Securityholders in accordance with a Milestone Report within [***] Business Days of the delivery of the Milestone Payment Schedule and in accordance with Section 1.4.
- Description
MILESTONE PAYMENT SCHEDULE. The Project Agreement Holder shall document the accomplishments of each Project Payable Milestone under each Project Agreement. Acceptance of Milestones shall be contingent upon approval from the Government Agreements Officer Representative (AOR) detailed in Clause No. 9, Technical and Administrative Representatives. Milestone payments will be paid in the amount indicated in the attached Milestone Payment Schedule (Attachment A).
- Description
MILESTONE PAYMENT SCHEDULE. The milestones below are for reference and costs for the project will be invoiced monthly on a cost reimbursable basis as the work progresses.
- Description
“Milestone Payment Schedule” means the schedule attached hereto as Exhibit C-2. “Monthly Progress Payment” means the payment to be made to Company on months and as indicated on the Milestone Payment Schedule attached hereto as Exhibit C-2.
- Description
Milestone Payments. Seres shall pay Bacthera the Final CapEx Amount (as it may be adjusted under this Agreement) upon completion by Bacthera of the applicable milestones set forth in and in accordance with the following milestone payment schedule (the “Milestone Payment Schedule”).
What is a Milestone Payment Schedule?
A Milestone Payment Schedule is a payment plan that divides the total contract value into smaller, manageable payments that are made at specific stages of the project upon achieving predefined project milestones. These milestones are critical tasks or deliverables that are necessary to reach the project’s completion.
When should I use a Milestone Payment Schedule?
You should consider using a Milestone Payment Schedule in the following scenarios:
- Large Projects: It helps manage cash flow and ensures that work is progressing according to plan.
- Risk Management: It reduces the risk for both client and contractor by ensuring payment is linked to the completion of specific, agreed-upon project elements.
- Performance-Based Projects: Encourages timely completion by providing financial incentives tied to the achievement of milestones.
- Long-Term Contracts: For long-term or ongoing projects, milestone payments help maintain continued engagement and motivation.
How do I write a Milestone Payment Schedule?
To write a Milestone Payment Schedule, follow these steps:
- Identify Milestones: Break down the project into significant phases or deliverables.
- Define Criteria for Completion: Clearly specify what constitutes the completion of each milestone.
- Assign Payment Amounts: Distribute the total contract value across the milestones. The payment should reflect the effort and resources required for each milestone.
- Include Dates: Specify expected completion dates for each milestone to ensure timely progress.
- Incorporate into Contract: Ensure the schedule is formally part of the contract, with agreement from all parties involved.
Example:
- Milestone 1: Project Kickoff - 10% of total payment
- Milestone 2: Completion of Design Phase - 20% of total payment
- Milestone 3: Prototype Development Completed - 30% of total payment
- Milestone 4: Final Product Delivery - 40% of total payment
Which contracts typically contain a Milestone Payment Schedule?
Milestone Payment Schedules are commonly found in the following types of contracts:
- Construction Contracts: Where various phases of building need to be completed before moving onto the next stage.
- Software Development Contracts: Often used to ensure segments of software are delivered and functional before proceeding.
- Research and Development Contracts: Where payments are made upon achieving certain research objectives or innovations.
- Freelance/Consulting Agreements: Where clients want to ensure that freelance or consultancy work aligns with their expectations as the project progresses.
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