You might know the answer to this specky, when I get a house built, the builder has never had to have enough cash up front to build my house. Usually the builder has a 30 or 60 day account from the suppliers, with which he gets the material to build the house. The staged payments enables him to pay his bills along the way. In effect he has no out of pocket expenses during construction.
The payments are usually paid in a number of stages ie foundations, frame, lockup and completion.
The milestone payments you refer to for government projects, seems to be the same thing.
My question is, do government contractors have a similar arrangement to my builder, ie credit with suppliers to cover construction costs so that they don't have out of pocket expenses while the project is under construction?
Ann: Kalbarri Microgrid Contract Award, page-28
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