Interim Payments
An interim payment is a partial payment made during the course of a construction project. Interim payments are typically made to the contractor on a monthly basis, and are based on the value of work completed to date. The purpose of interim payments is to provide the contractor with working capital to cover the costs of materials and labor.
Interim payments are different from progress payments, which are made at regular intervals (usually monthly) based on the percentage of work completed. Progress payments are typically made after the work has been completed, whereas interim payments are made during the course of construction.
The terms and conditions of interim payments will be set out in the contract between the owner and contractor. It is important that both parties understand and agree to these terms before work begins, as they can have a significant impact on the financial aspects of the project.
