What is a partial payment? (Review)

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flag-us.png Procore Pay is available in the United States. It is designed for General Contractors and Owner-Builders who act as their own General Contractors on a job. Procore Pay extends the Invoice Management functionality in the Procore web application to handle the payment process between general and specialty contractors.

Answer

A partial payment covers a portion of a payee's costs for completing work, securing resources, or achieving milestones. Partial payments assure payees of consistent cash flow and payors of steady project progress.

Example iconExamples

Scenarios where a payor might issue partial payments to payees include:

  • Material and equipment procurement. To secure long-lead, expensive, or specialized items or materials.

  • Milestone or phase completion. When milestones or distinct phases of work are completed.

  • Offsite fabrication. To cover labor and material costs for custom component fabrication.

  • Substantial progress. Upon inspection of significant progress, such as milestone completion.

  • Contractual payment schedules. As dictated by agreed-upon payment schedules within the construction contract.

See Also