NEGOTIATE PROGRESSIVE PAYMENT SCHEDULE
As payment terms often dictate deliverables and provide a chance for parties to evaluate their progress, setting out these terms clearly can save hassle and side-step unmet expectations. Some important questions to consider:
• How are payments made, and when?
• Fixed lump sum?
• Fixed periodic fee?
• Time and materials or other variable?
• Is payment based on performance?
• Upon execution of contract?
• Upon delivery or installation?
• Completion of training?
• Upon completion of acceptance testing?
• Upon productive use or when system goes live?
• Specified number of days after any one of the preceding events?
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