What is a "progressive" payment schedule?

A "progressive" payment schedule is structured to align payments with the completion of specific phases or milestones in a project. This method helps ensure that the contractor receives payment as they complete significant parts of the work, which can help with cash flow management. This schedule incentivizes timely completion and maintains accountability, as payments are tied to actual progress rather than being disbursed at fixed intervals or based on overall project completion.

This approach contrasts with a payment structure based solely on total completion of the project, which might not reflect the varying levels of effort and materials that go into different phases. It also differs from schedules that might require a lump sum payment at the project's initiation or those that are strictly time-based, as both of these methods may not adequately reflect the work completed at any given time. Instead, a progressive payment schedule effectively supports project management by linking funds directly to tangible progress.