PROGRESS PAYMENTS
Each project with a value over USD. 50,000 will be fabricated following a pre-determined time and material schedule, shaped in a graphic called the S-curve. At 2, 3, 4 or more pre-determined intervals a cut-off date will be set, linked to a milestone (such milestone that normally falls at the cut-off date). When a milestone is reached a payment installment needs to be effected. Proof and evidence of a milestone will be furnished by pictures.
S-curves are an important project management tool. They allow the progress of a project to be tracked visually over time and form a historical record of what has happened to date. Analyses of S-curves allow project managers to quickly identify project growth, slippage (behind schedule), and potential problems that could adversely impact the project if no remedial action is taken.
Typical S-curve
The S-curve often forms its shape like an "S" because the growth of the project in the beginning stages is usually slow. The team members are just starting to engage in the first phase of execution, which can be slow before working out the details.
As more progress is made, the growth accelerates rapidly, creating the upward slope that forms the middle part of the “S” .This point of maximum growth is called the point of inflection. During this period, our architects and engineers are working heavily on the project, and many of the major costs are incurred. At this point the payments for the milestones will be the highest. After the point of inflection, the growth begins to smooth out, forming the upper part of the “S” known as the upper asymptote — the “mature” phase of the project. This is because the project is mostly finished at this point and is winding down. Typically only tasks such as finishing touches and final approvals are left at this point.