Performance milestones clause: Copy, customize, and use instantly
Introduction
A performance milestones clause outlines the specific goals or achievements that must be reached at various stages throughout the duration of the contract. This clause is designed to track progress, ensure accountability, and provide clear guidelines on what constitutes successful performance, with penalties or rewards tied to the completion of each milestone.
Below are templates for performance milestones clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard performance milestones clause
This version includes basic performance milestones provisions.
[Party B] agrees to complete the following milestones as part of this contract:Milestone 1: [Description of milestone], due by [date].Milestone 2: [Description of milestone], due by [date].
For each milestone that is not completed by the agreed-upon date, [Party B] will incur a penalty of [amount] for each day of delay.
Performance milestones clause with provision for performance-based payments
This version applies to performance-based payments.
Payment for this contract will be made based on the successful completion of the following milestones:Milestone 1: [Description of milestone], [percentage]% payment upon completion.Milestone 2: [Description of milestone], [percentage]% payment upon completion.
If any milestone is not completed by the agreed date, the payment for that milestone will be reduced by [percentage]% for each day the milestone is delayed.
Performance milestones clause with provision for reviewing milestones
This version applies to milestone reviews.
The parties will review the completion of each milestone according to the following schedule:Milestone 1: Review on [date].Milestone 2: Review on [date].
If any milestone is not completed to satisfaction, [Party A] may request modifications or impose penalties as agreed in this contract.
Performance milestones clause with provision for penalties for missed milestones
This version applies to penalties for missed milestones.
[Party B] agrees to complete the following performance milestones:Milestone 1: [Description], due by [date].Milestone 2: [Description], due by [date].
If any milestone is missed by more than [X] days, a penalty of [amount] will be deducted from the next payment due to [Party B] for each day of delay.
Performance milestones clause with provision for flexible milestone dates
This version applies to flexible milestone dates.
[Party B] agrees to complete the following milestones within flexible timelines, with due dates to be mutually agreed upon by both parties at the start of each phase:Milestone 1: [Description of milestone].Milestone 2: [Description of milestone].
Delays beyond [X] days for any milestone will result in a penalty of [amount] per day until the milestone is achieved.
Performance milestones clause with provision for early-stage milestone completions
This version applies to early-stage completions.
[Party B] will aim to achieve the following milestones ahead of schedule:Milestone 1: [Description of milestone], due by [date].Milestone 2: [Description of milestone], due by [date].
If any milestone is completed earlier than the agreed date, [Party A] may grant a bonus or additional payment to [Party B] based on the level of performance.
Performance milestones clause with provision for completion certificates
This version includes completion certificates.
Upon completion of each milestone, [Party B] will submit a completion certificate that details the work performed and confirms that the milestone has been met. The payment will be processed upon acceptance of the certificate by [Party A].
Performance milestones clause with provision for milestone adjustments
This version applies to milestone adjustments.
In the event of significant changes to the scope of work, the milestones outlined in this Agreement may be adjusted. Both parties must agree on the new milestones and deadlines in writing before any changes to the contract will take effect.
Performance milestones clause with provision for review of milestone success
This version applies to review of milestone success.
After the completion of each milestone, [Party A] will have [number] days to review the work submitted by [Party B] and approve or request revisions. If the milestone is approved, the corresponding payment will be made.
Performance milestones clause with provision for failure to achieve milestone goals
This version applies to milestone goal failure.
If [Party B] fails to achieve a milestone as defined in this Agreement, [Party A] reserves the right to withhold payment for the corresponding milestone until [Party B] successfully meets the specified goal.
Performance milestones clause with provision for bonuses for exceeding expectations
This version applies to exceeding expectations.
[Party B] will receive a bonus of [percentage]% of the milestone payment if [Party B] exceeds the agreed-upon targets for any of the following milestones:Milestone 1: [Description of milestone].Milestone 2: [Description of milestone].
Performance milestones clause with provision for partial payments for partial milestone completion
This version applies to partial milestone completion.
If [Party B] completes a portion of the work associated with any milestone, [Party A] will pay [Party B] a partial payment based on the percentage of work completed. The final payment will be made once the entire milestone is fully completed and approved.
Performance milestones clause with provision for penalty for failure to meet deadlines
This version applies to penalty for missed deadlines.
If [Party B] fails to meet the deadlines for the specified milestones, [Party B] will pay a penalty of [amount] for each day that the milestone remains incomplete beyond the agreed-upon due date.
Performance milestones clause with provision for non-monetary milestones
This version applies to non-monetary milestones.
[Party B] agrees to meet the following non-monetary milestones as part of the agreement:Milestone 1: [Description of non-monetary task], to be completed by [date].Milestone 2: [Description of non-monetary task], to be completed by [date].
If these milestones are not met, [Party B] will take corrective actions as agreed with [Party A].
Performance milestones clause with provision for review and revision of milestones
This version applies to milestone revisions.
[Party A] reserves the right to review and revise the performance milestones every [X months] based on the progress of the project. If necessary, new milestones or adjustments to existing milestones will be made to reflect current priorities and timelines.
Performance milestones clause with provision for immediate penalties on failure
This version applies to immediate penalties.
In the event that any milestone is not achieved on time, [Party B] will immediately incur a penalty of [X%] of the milestone value for each day of delay. These penalties will be deducted from the next payment due to [Party B].
Performance milestones clause with provision for milestone-based reporting
This version applies to milestone reporting.
[Party B] agrees to submit a progress report at the completion of each milestone. The report will detail the work completed, any challenges encountered, and the expected timeline for the next milestone. Payment will be processed only after [Party A] reviews and approves the report.
Performance milestones clause with provision for final milestone payment
This version applies to final milestone payments.
The final payment for the contract will be made upon successful completion of the last milestone. This milestone will require [Party B] to submit all deliverables and ensure all previous milestones have been successfully completed and accepted by [Party A].
Performance milestones clause with provision for penalties based on project budget
This version applies to penalties based on the project budget.
If any milestone exceeds the agreed budget by more than [X%], [Party B] will be required to pay a penalty of [amount] for each instance of budget overrun, in addition to completing the necessary corrective actions to bring the project back within budget.
Performance milestones clause with provision for inclusion of customer feedback in milestone reviews
This version applies to customer feedback.
For each milestone, [Party B] will include customer feedback as part of the review process. If customer feedback indicates dissatisfaction or concerns, [Party B] will address those issues and take corrective action before proceeding with the next milestone.
Performance milestones clause with provision for adjusted milestones based on performance
This version applies to adjusted milestones.
Based on [Party B]’s performance in achieving the initial milestones, [Party A] may adjust future milestones to reflect new goals, timelines, or challenges. Any changes to the milestones must be agreed upon in writing by both parties.
Performance milestones clause with provision for completion certification
This version applies to completion certification.
Upon the completion of each milestone, [Party B] will submit a certification of completion. [Party A] will review and approve the certification, after which the agreed-upon payment for that milestone will be made.
Performance milestones clause with provision for delayed milestones due to force majeure
This version applies to force majeure.
If a milestone is delayed due to an event of force majeure, including but not limited to natural disasters, strikes, or acts of war, the deadline for that milestone will be extended by the duration of the event. [Party B] will notify [Party A] in writing of the delay as soon as possible.
Performance milestones clause with provision for milestone-based bonuses
This version applies to milestone-based bonuses.
[Party B] will be entitled to a bonus of [percentage]% of the milestone value for each milestone that is completed ahead of the agreed schedule. The bonus will be paid upon the successful completion and approval of the milestone by [Party A].
Performance milestones clause with provision for additional milestones based on project scope
This version applies to scope-based milestones.
If the scope of the project changes, both parties agree to discuss and establish additional milestones that reflect the new scope. These new milestones will be outlined in writing and agreed upon by both parties before proceeding.
Performance milestones clause with provision for partial milestone completion
This version applies to partial completion.
[Party B] may submit partial completion for each milestone. Partial payments will be made based on the percentage of work completed, as agreed by both parties, with the balance due upon final completion of the milestone.
Performance milestones clause with provision for milestone tracking
This version applies to milestone tracking.
[Party A] and [Party B] will track the progress of each milestone using a shared project management tool. The tool will include details such as expected completion dates, current progress, and any adjustments to the timeline. Both parties will have access to the tool for transparency.
Performance milestones clause with provision for delays due to unforeseen circumstances
This version applies to unforeseen delays.
If [Party B] encounters unforeseen circumstances that prevent timely completion of a milestone, [Party B] will notify [Party A] immediately. Both parties will discuss the impact and agree on a revised timeline without penalties, provided the circumstances are validated as unforeseen.
Performance milestones clause with provision for penalties for incomplete milestones
This version applies to penalties for incomplete milestones.
[Party B] will incur a penalty of [X%] of the total milestone value for any incomplete milestone not completed within [X] days after the due date. This penalty will be deducted from the next payment for the project.
Performance milestones clause with provision for milestone adjustments due to project scope changes
This version applies to scope changes.
If the scope of work changes significantly, the milestones and associated deadlines will be adjusted accordingly. Both parties will agree on the new milestones and timelines, and the contract will be amended to reflect these changes.
Performance milestones clause with provision for milestone achievement reports
This version applies to achievement reports.
Upon completion of each milestone, [Party B] will submit a milestone achievement report to [Party A]. This report will include detailed information on the work completed, any challenges encountered, and any modifications made to the original plan.
Performance milestones clause with provision for review of progress before each milestone
This version applies to milestone progress reviews.
Prior to reaching each milestone, [Party A] will conduct a review of the progress made by [Party B]. This review will include an assessment of whether the work is on schedule, meets the required standards, and any adjustments needed to complete the milestone.
Performance milestones clause with provision for an extension of deadlines due to project complexities
This version applies to project complexities.
If unforeseen complexities arise during the course of the project that impact the completion of a milestone, the deadline for that milestone may be extended by mutual agreement of both parties. This extension will be documented in writing, and no penalties will apply for the extended period.
Performance milestones clause with provision for milestone redefinition
This version applies to redefined milestones.
If a milestone becomes unachievable due to factors beyond the control of [Party B], both parties agree to redefine the milestone and establish a new achievable goal. The updated milestone will be agreed upon in writing, and any changes to the timeline will be reflected in the revised schedule.
Performance milestones clause with provision for evaluation of milestones by third-party expert
This version applies to third-party evaluations.
In the event of a dispute regarding the completion or quality of a milestone, both parties agree to engage a neutral third-party expert to evaluate the milestone. The expert’s decision will be final and binding, and the cost of evaluation will be shared equally between both parties.
Performance milestones clause with provision for an expedited review process
This version applies to expedited reviews.
[Party A] will expedite the review process for each milestone, ensuring that approval or feedback is provided within [X] days of submission. Any delays in providing feedback will not result in penalties for [Party B].
Performance milestones clause with provision for milestone-related deductions
This version applies to milestone deductions.
If a milestone is not completed to the satisfaction of [Party A], [Party B] agrees to make adjustments or rectify deficiencies without additional charge. If the issues are not resolved within [X] days, [Party A] may deduct [X%] from the payment for the milestone.
Performance milestones clause with provision for milestone acceptance criteria
This version applies to acceptance criteria.
Each milestone will have clearly defined acceptance criteria, agreed upon by both parties. These criteria will include specific measurable outputs, deadlines, and quality standards. [Party B] must meet these criteria for the milestone to be accepted and payment to be processed.
Performance milestones clause with provision for performance-based evaluation of milestones
This version applies to performance evaluation.
The completion of each milestone will be evaluated based on pre-determined performance metrics, including quality, timeliness, and adherence to the original scope. The evaluation will be conducted by [Party A], and [Party B] will receive feedback within [X] days of milestone submission.
Performance milestones clause with provision for milestone-based penalties for underperformance
This version applies to underperformance penalties.
If [Party B] fails to achieve the agreed performance standards for any milestone, [Party B] will incur a penalty of [X%] of the milestone payment. The penalty will be calculated based on the level of underperformance and will be deducted from the payment for that milestone.
Performance milestones clause with provision for adjustment of penalties based on milestone performance
This version applies to adjusted penalties.
The penalties associated with each milestone will be adjusted based on the degree to which [Party B] meets or exceeds the agreed-upon performance standards. If [Party B] exceeds the milestone expectations, penalties may be waived or reduced at [Party A]'s discretion.
Performance milestones clause with provision for termination if milestones are not met
This version applies to termination.
If [Party B] fails to meet three consecutive milestones, [Party A] reserves the right to terminate the Agreement with immediate effect. In such cases, [Party B] will forfeit any outstanding payments due for uncompleted milestones, and any work completed will be compensated pro-rata.
Performance milestones clause with provision for mutual agreement on milestone changes
This version applies to mutual agreement on changes.
Any changes to the milestones, including deadlines, deliverables, or scope of work, must be agreed upon by both parties in writing. Changes to the milestones will not result in penalties unless mutually agreed upon beforehand.
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