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Clause · payment_holdback

Milestone Holdback

Payment
STANDARD+
low risk
US-IN
US-GB
US-EU
US-SG
GENERIC

Clause body

Client may withhold ten percent (10%) of the fees allocated to each milestone as a quality holdback. The accumulated holdback shall become payable upon final acceptance of all Deliverables, provided Vendor has resolved all material non-conformities identified during the acceptance process and delivered the repositories, credentials, documentation, and transition materials required under this Statement of Work. The holdback is not a penalty and is intended to align final payment with completion of the agreed acceptance and handover obligations.

Sources

Commercial contracting practice; performance holdback standard

Last verified: Pending review.

Library version: 1.0.0