A progress payment is a partial payment made to a contractor as work proceeds, rather than paying the full amount upon project completion. For large construction or infrastructure projects, contracts typically include a payment schedule tied to milestones or percentage completion. For example, a contractor might receive 25% after foundation work, another 25% when framing is complete, and so on. Progress payments help contractors manage cash flow for materials and labour while protecting the municipality by not paying for uncompleted work. Payments usually require inspection and certification that work meets specifications. A holdback (often 10%) is typically retained until final completion.