Milestone payments are similar to progress payments and are tied to successful completion of predetermined milestones.

• A. Milestone payments
• B. Progress payments
• C. Advance payments
• D. Partial payments

Answer: (A)

Milestone payments are a payment approach where funds are released when specific, predefined events or deliverables are completed. This is like progress payments in that both are tied to showing progress, but milestone payments use concrete checkpoints (milestones) rather than a continuous measure of work done. The statement describes payments that occur upon successful completion of predetermined milestones, which matches exactly how milestone payments operate.

Advance payments are made before work starts, and partial payments is a generic term for paying in installments not necessarily tied to milestone events, so they don’t fit as precisely.