Federal activity overview — Progress Payments
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Progress payments are interim payments made to contractors during contract performance based on costs incurred, percentage of completion, or a particular stage of completion. They provide working capital financing to contractors before delivery, typically at 80% of costs incurred for large businesses and 90% for small businesses. Progress payments are the most common form of government contract financing for fixed-price contracts.
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Ask about Progress PaymentsSignificant positive cash flow impact. Contractors receive up to 80% (large) or 90% (small) of costs incurred during performance. Payments are liquidated upon delivery, with the government recouping progress payments from delivery payments at a liquidation rate.
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Bureauify. (2026). Progress Payments — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/progress-payments
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