What does "installment payment" mean in construction contracts?

"Installment payment" in construction contracts refers to part of the payment made at specific project milestones. This approach allows for payments to be distributed throughout the duration of a project rather than requiring a large sum upfront or only upon project completion. It provides a financial structure that aligns payment with progress on the work, ensuring that the contractor is compensated for completed stages of the project. This method helps to manage cash flow for both the contractor and the client, while also motivating timely progress and quality work. By linking payments to specific milestones, both parties have a clear timeline and understanding of the project's progress, which can foster better communication and accountability throughout the construction process.