Progress payments should be based on what?

Progress payments should be based on what?

• A. the work performed throughout the current payment request period
• B. the work completed to date on the project
• C. the schedule of values
• D. the value of the completed work

Answer: (A)

Progress payments are based on the work performed during the current payment period. This approach ties payment to actual progress made in that window, supporting steady cash flow and ensuring the contractor is paid for what has been completed in the current period. The schedule of values helps organize price by project components, but the payment amount is still determined by the work completed in the current period, not by all work completed to date or by the total value of completed work over the project. Paying for the cumulative value of completed work or relying solely on the schedule of values can misalign payments with real progress and risk over- or under-payment.

Progress payments are based on the work performed during the current payment period. This approach ties payment to actual progress made in that window, supporting steady cash flow and ensuring the contractor is paid for what has been completed in the current period. The schedule of values helps organize price by project components, but the payment amount is still determined by the work completed in the current period, not by all work completed to date or by the total value of completed work over the project. Paying for the cumulative value of completed work or relying solely on the schedule of values can misalign payments with real progress and risk over- or under-payment.