A payment schedule is a document that outlines the terms and timeline of payments on a construction project. It typically lists the services to be provided, the estimated cost for each service, and the proposed payment schedule for those services.
The payment schedule outlines when payments are due from the client throughout the duration of the project. Generally speaking, these payments are made at pre-determined milestones such as after completion of certain phases or upon delivery of materials or other items necessary to complete the job. Payment schedules usually include details such as dates when invoices are due, amounts expected to be paid, and terms of payment including late fees and other penalties associated with delayed payments.
Lastly, payment schedules may contain information about what happens if either party fails to meet its obligations under the contract.