What are milestone payments?
Milestone payments are made during the course of the project to the contractor for specific items, or milestone, which are completed. For example, a milestone payment could be that the homeowner owes a certain amount of money when the roofing is started, or when the concrete is started. We believe milestone payments are a more efficient arrangement and more equitable than an arrangement where the contractors bill the homeowner every week. The problem with weekly billing is that the contractor or subcontractors may not accomplish the work they were scheduled to accomplish and it is not fair to the homeowner to pay when work was not done on schedule. 07.
