probably this is a question not about project management, but I would like to hear your experience or you could suggest where should I look (googling did not help)
So IT service providers use to have a monthly payment for their services since most projects were T&M. Now since they stepped in Fixed Price projects area, some clients want payment is linked to the milestones, which means that in the best case scenario payments will come every 2-3 months (2-3 months is time enough to build something which can be delivered). This is hard to accept for the service provider's CFO, since it may influence the cash-flows.
Anyway, it seems that this (payments by milestones) is the most acceptable and suitable way to both (service provider and client) to control the project and pay accordingly.
- What is your experience with payment terms around FPP ?
- Is there any best practices to read on this topic?