Contract Glossary
Milestones
Definition
Milestones are checkpoints in a contract that trigger something — usually a payment, a review, or the next phase of work. They tie money to progress instead of time, so nobody's paying upfront for work that might never get done.
In Practice
You're building a $40,000 e-commerce platform. Instead of 50% upfront / 50% on delivery (risky for both sides), you set milestones: $8,000 on project kickoff, $8,000 when wireframes are approved, $8,000 when the frontend is built, $8,000 when backend integration is complete, $8,000 on final launch. The client knows they're paying for completed work. You know you're getting paid as you go. Everyone sleeps better.
Common in these contract types
Related terms
Frequently asked questions about milestones
Enough to manage risk, but not so many they become administrative overhead. For a 3-month project, 4–6 milestones works well. For a 2-week project, 2–3 is fine. The rule of thumb: no milestone should represent more than 25% of the total project value. That limits your exposure if things go wrong.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.