The term ‘payment profile’ describes the timing and scaling of a contractor’s remuneration. For example, some contracts include a retention clause, under which the client retains a sum of money until a defined period has elapsed. In other contracts, the client may make interim payments to the contractor to cover out-of-pocket expenses such as the purchase of materials, based on a claim by the contractor for the value of those expenses. Alternatively, the client may define key milestones that trigger the release of a payment on completion by the contractor. Such stage or milestone payments represent a payment profile, and this profile is used where it is not possible or appropriate to create a simple lump sum payment upon completion of the work. See also Incentive.« Back to Glossary Index
Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.