Important Comparisons in Escrow Payments Contracts

Description

This Skill Bit highlights the key differences between escrow payments, advance payments, and milestone payments. Escrow payments involve a neutral third party holding funds until specific conditions are met, offering security for both parties. In contrast, advance payments provide upfront capital, while milestone payments are tied to project progress. Understanding these distinctions is essential for effective contract management, as they impact cash flow, risk allocation, and project control.

Duration approx. 5 Min.

Tier: proficiency