Milestones-based Payment

This model will work best for clients who are concerned about progress in remote projects. Integral Fusion’s Milestones-based payment schedules have achievable milestones and visible progress monitoring which greatly helps in reducing risks.

In a remote development project, milestones-based payment schedules reinforce progress monitoring, and the evolution of firm, achievable milestones. At the end of it, these deliver per achievable and measurable output. Milestone-based payment helps you justify payment, and visible progress reduces risks. This engagement model is well suited for clients who are concerned about highly sensitive projects schedules. The good part about this model is that the core point is to move away from paying for time to paying for results. See example below highlighting the use of milestone bound payment:

Consultant will be paid a $2,000 advance on this contract upon execution. They will then be paid $3,000 for successful completion of the six month milestones, and an additional $5,000 for the twelve month milestones, which complete the drafting of the outsourcing plan. At this point, it is agreed that either party has the right to terminate the contract upon submission of a written statement that states why they believe the plan implementation will not proceed or will not lead to results specified.

During plan implementation, an additional $5,000 will be paid at 18 months and again at 24 months on successful milestone completion. For the two successive years following completion of this contract the consultant will also be paid a success fee of 50% of all net revenue above $50,000 up to a limit of $25,000