Definicja milestone payment

Funding arrangement where a specific goal in an agreeement is determined, and when fulfilled and verified, a defined percentage amount is paid to the grantee from the grant's authorized funds.

Example

A grant is awarded to a contractor to build low-income housing. In the agreement, specific targets are set for the completion of the project, such as having a percentage of the houses ready to live in by a specified date. This is a milestone, that if reached on time and to the satisfaction of the grantor, triggers a payment to the grantee for the costs incurred.