When is progress payment typically justified in a government contract?

• A. At project initiation.
• B. Upon satisfactory completion of a milestone or deliverable as specified, with proper invoicing and acceptance.
• C. Upon final acceptance.
• D. Upon completion of the entire project.

Answer: (B)

Progress payments are tied to concrete pieces of work defined as milestones or deliverables in the contract. A payment is justified when that milestone is completed satisfactorily, the contractor submits a proper invoice, and the government formally accepts the deliverable. This setup aligns payment with actual performance, ensures the government receives verifiable value before moving on, and provides the contractor with necessary cash flow to continue work. Paying at the start would risk funds for work not yet done, while waiting until the very end would stall incentives for steady progress and delay compensation for completed work. Final acceptance or completion payments are separate events that occur after all work is finished, not for each milestone.