Milestone Payment Schedule
No. | Payment Milestone Percentage
of Total
1 Initial Payment within 10 days of the Contract signing 10%
2 Delivery of Design Documents / Start of Production 20%
3 Equipment 50% Complete 20%
4 Embedded Parts Ready to Ship 10%
5 Equipment 100% Ready to Ship 25%
6 Earlier of Delivery of Equipment or 90 days from Milestone 5* 5%
7 Earlier of Commercial Operation or 180 days from Milestone 5* 5%
8 Earlier of Final Completion or 240 days from Milestone 5* 5%
Total 100%
* Days from Milestone No. 5 condition will only be applicable for time period of any delays not
attributable to Supplier.
8.1.2
The Purchaser will retain a portion of the progress payment each month in accordance with
the following procedures:
8.1.2.1
8.1.2.2
8.1,2..3
8.1.2.4
The Purchaser will establish an escrow account in the financial institution of the
Purchaser’s choosing. Interest on the principal will be paid to the Supplier no
later than the final payment. The principal will be the accumulated retainage
paid inte the account by the Purchaser.
The principal will be held by the financial institution, available only to the
Purchaser until termination of the contract.
Until the work is 50% complete, as determined by the Engineer, retainage shall
be 1% of the monthly payments claimed. The computed amount of retainage
will be deposited in the escrow account established above.
After the work is 50% complete, and provided the Supplier has satisfied the
Engineer in quality and timeliness of the work, and provided further that there
is no specific cause for withholding additional retainage, no further amount will
be withheld, The escrow account will remain at the same balance throughout
the remainder of the project.
8.2 Invoices for the Milestone Payments described in Articles 8.1.1 above will be addressed to:
OR
City of Nashua
Accounts Payable
229 Main Street
