Reading payment milestones in facility service contracts

Facility contracts often hide risk in the schedule, not the headline price.

Deposits tied to vague milestones

A 40% deposit on “contract signing” is common; 40% on “materials ordered” without defining acceptable proof is less so. Ask what document triggers each payment.

Retention and defect periods

Retention held until final acceptance protects you. Note how long the contractor must remedy punch-list items and whether retention releases automatically or needs your written sign-off.

Change-order pricing mechanics

Fixed unit rates for extra work prevent open-ended hourly additions. If rates are “as quoted,” insist on a cap or pre-approved rate card in an appendix.

Termination and work-in-progress

If you exit early, who owns custom materials? Who pays demobilization? Silence here gets expensive during disputes.

Practical next step

Mark up the schedule with your finance lead before legal review. Our contract review service focuses on these commercial clauses in plain language.