Definition of the term Payment Schedule

A pre-agreed upon schedule of payments to a contractor usually based upon the amount of work completed. Such a schedule may include a deposit prior to the start of work. Payments are often scheduled for the beginning of the month and allow the contractor to subcontractors and suppliers by the 10th of the month. There may also be a temporary ‘holdout’ at the end of the contract for any small items which have not been completed.