Progress Payment Management

Progress Payment Management Stages

Progress management consists of several stages:

1. Measurement: The progress payment management process begins with measuring the completion rate of the work. This includes determining how much of the construction work has been completed.
2. Calculation: Progress management includes calculating the amount to be paid to the contractor. This includes things like determining the price of the measured work, adding taxes and other charges.
3. Approval: Progress management includes the approval of the calculated payment. This includes checking the performance of the work and checking whether the terms of the contract are met.
4. Payment: Progress management involves making payment to the contractor. This includes tasks such as determining the payment due date, transferring funds to the contractor's bank account.

What are the advantages of Progress Management?

In construction project management, progress payment management is an important process for the financial management of the project and has many advantages. Some advantages are:

1. Budgetary Control: Progress management is important to properly manage the budget of the construction project. By controlling and monitoring the payments made, the project budget can be better controlled.
2. Compliance of Contract Terms: Progress payment management ensures that the compliance of contract terms is checked. In this way, it is ensured that the contractor completes the work in accordance with the terms of the contract and that the payments are made correctly.
3. Early Diagnosis of Problems: Progress payment management helps in early diagnosis of problems that arise during the project process. In this way, problems are solved quickly and the project duration cannot be extended.
4. Improvement of Work Performance: Progress management helps the contractor to improve work performance. Thanks to the measurement and calculation processes, it is ensured that the contractor's work is accurately measured and calculated. This increases the contractor's job performance.
5. Improvement of Communication: Progress management improves communication between the project team. Thanks to the constant communication between the contractor and the project management, the correct flow of information about the payment process is ensured and the work is better organized.

All these advantages show that progress payment management is a critical process for construction project management. Thanks to a good progress payment management, the successful completion of the project and keeping the budget under control can be ensured.