This topic clarifies when the customer will pay the contractor for the services.
- Option 1 is best for services provided at an hourly (or some other) rate.
- Options 2 and 3 are best for work that is based on a project scope.
For larger projects, option 3 is likely the best method – smaller amounts of money change hands, and if the agreement isn’t working, the parties can agree to end it with less money at stake.
Contractor will invoice Customer for the Services rendered during the previous {{billing cycle period}}. The Customer will pay the invoice within {{payment period}} of receiving the invoice.
Contractor will issue Customer with an invoice:
- for a non-refundable deposit of {{deposit amount}} before commencing the Services; and
- for {{completion amount}} upon the completion of the Services,
both invoices to be paid by Customer within {{payment terms}} of Customer receiving the invoice.
The parties will break up payments into "milestones" where Customer pays Contractor when stages of the project are complete.
Contractor will issue Customer with invoices for the amounts set out below in accordance with the completion milestones set out below.
{{milestones}}
Invoices from Contractor will be paid by Customer within {{payment terms}} of Customer receiving the invoice.
Customer will pay Contractor the fees on the dates described in the Work Scope.
Customer authorises Contractor to effect payment for the Services via {{automated payment facility}}