What does a contract's payment schedule detail?

The payment schedule within a contract is fundamentally designed to outline the conditions and timing for payments based on specific project milestones. This means that payments are often tied to the completion of certain stages of work, ensuring that the contractor or service provider receives compensation as significant portions of the project are completed. Such a structure helps manage cash flow for both parties and ensures that work is progressing as planned before further funds are released.

While other aspects of a contract, such as the hourly rate for workers or reimbursement methods for material costs, are important, they do not encompass the broader scope of the payment schedule, which focuses specifically on milestones. The idea of a bonus schedule might be referenced separately, but again, this does not define the payment schedule itself. Therefore, outlining milestone-based payments is essential for maintaining accountability and progressive payment facilitation throughout the project's duration.