What do progressive payments in construction involve?

Progressive payments in construction refer to a system where payments are made in installments as certain milestones or phases of the project are completed. This approach allows contractors to receive compensation for their work progressively rather than waiting until the entire project is finished. By doing so, it provides cash flow for the contractor throughout the duration of the project, ensuring that they can cover ongoing expenses such as labor, materials, and overhead costs.

This method is beneficial for both parties involved; contractors are incentivized to complete phases efficiently and on time, while clients can ensure that funds are released only after satisfactory completion of specific tasks or phases. Therefore, the option that reflects this method correctly is the one that describes partial payments after completion of specified project phases.