Payment Term Notes: Definitions & Explanations PDF | Download eBooks
Study Payment Term lecture notes PDF with project management definitions and explanation to study What is Payment Term?. Study payment term explanation with project management terms to review project management course for online MBA programs.
Payment Term Definition:
Payment term addresses the basis on which the customer will make payments to the contractor.
Successful Project Management by Jack Gido and James P. Clements
Payment Term Notes:
When a contract is made between a customer and a contractor to carry out a particular project, it is important to define the payment method at the start of the project. There are many terms of payment that can be adopted by a customer in a contract and the contractor agrees to them. One way to pay is monthly and the amount will be according to the actual costs incurred. The second method is to divide the total amount for the project into equal parts and payment will be made monthly or quarterly. The third method of payment is to pre-define a specific percentage of amount for every specified project milestone and make payments each time a milestone is achieved. Payment to the contractor can also be made one time at the end of the project.
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