Government Contracting Database
Payment Under Fixed-Price Construction Contract
The payment clause concerns the manner in which you are paid for your work. The government, under this clause, will make monthly progress payments on estimated completion of the work. It also permits the government to consider payment for materials delivered but not yet incorporated in the work. Upon completion and acceptance of all of the work, the government must pay the amount due. Usually, this final payment will have a release of all claims against the government which you must sign. It is important not to sign this release if you have outstanding claims (See Reservation of Rights). A signed release will probably cause you to waive your right to file any further claims for additional time or money.
(Also See Late Payment)
Updated: July 24, 2018