Payment run clause: Copy, customize, and use instantly
Introduction
A payment run clause establishes the procedure and timing for making payments for a project or service. This clause ensures that the payment schedule is clear, predictable, and structured, helping both parties to understand their financial obligations and avoid any disputes related to payments. It typically covers the frequency of payments, payment methods, and conditions for approval and processing.
Below are templates for payment run clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard payment run clause
This version includes general terms for payment processing.
The [Investor] shall make payments to the [Company] in accordance with the payment run schedule set out in [Schedule X]. Payments will be made on a [monthly/bi-weekly] basis, with each payment being due within [X] days of the invoice date. The [Company] shall submit invoices detailing the work completed, and the [Investor] shall process payment in accordance with the agreed terms.
Payment run clause with milestone-based payments
This version includes payments tied to project milestones.
The [Company] will submit invoices for payment upon the successful completion of each milestone outlined in the project plan. The [Investor] will process the payment within [X] days of receiving the invoice and confirming the milestone completion.
Payment run clause with payment approval process
This version includes an approval process for payment.
All payments are subject to approval by the [Investor]. The [Investor] shall review the submitted invoice within [X] days and either approve the payment or request clarifications. Payments will be made within [X] days after the invoice is approved.
Payment run clause with early payment discount
This version includes an early payment discount.
If the [Investor] makes payment within [X] days of receiving the invoice, a discount of [X]% will be applied to the total invoice amount. This discount will be automatically deducted from the payment processed by the [Investor].
Payment run clause with late payment penalty
This version includes penalties for late payment.
If the [Investor] fails to make the payment within [X] days of the invoice date, a late payment penalty of [X]% of the overdue amount will be applied for each [X] days of delay. The penalty will be added to the outstanding payment and due immediately.
Payment run clause with partial payments
This version includes provisions for partial payments.
The [Investor] may make partial payments at their discretion. If the payment is partial, the [Company] shall continue the work and submit additional invoices as the project progresses. All outstanding balances shall be paid in full upon completion of the project.
Payment run clause with payment upon completion
This version includes payment upon completion.
Payment for the full amount of the project will be made upon completion of all deliverables, as outlined in the agreement. The [Company] will submit the final invoice upon project completion, and the [Investor] agrees to make payment within [X] days of receiving the final invoice.
Payment run clause with regular monthly payments
This version includes regular monthly payments.
The [Investor] agrees to make regular monthly payments of [$X] to the [Company] starting on [start date]. Payments will be due on the [X] of each month and will continue until the project is completed or the agreement is terminated.
Payment run clause with variable payment schedule
This version includes a variable payment schedule.
Payments will be made based on the completion of specific project phases or deliverables. The [Company] will submit invoices after the completion of each phase, and the [Investor] will process payments within [X] days of receiving each invoice.
Payment run clause with final payment upon project closure
This version includes a final payment upon project closure.
The final payment for the project will be made upon the official closure of the project, which will be determined once all deliverables have been completed to the satisfaction of both parties. The final payment will be due within [X] days of project closure.
Payment run clause with invoicing schedule
This version includes an invoicing schedule.
The [Company] shall submit invoices on a [monthly/quarterly] basis, detailing the work completed during the invoicing period. The [Investor] agrees to make payment within [X] days of receiving the invoice and to follow the agreed payment run schedule.
Payment run clause with upfront payment requirement
This version includes an upfront payment requirement.
The [Investor] agrees to make an upfront payment of [X]% of the total project cost upon signing this Agreement. Subsequent payments will be made in accordance with the payment run schedule as outlined in this Agreement.
Payment run clause with payment method specification
This version specifies the payment method.
All payments under this Agreement shall be made via [bank transfer, credit card, check, etc.], to the account specified by the [Company]. The [Investor] agrees to cover any transaction fees associated with the payment method.
Payment run clause with payment adjustments for scope changes
This version includes payment adjustments for scope changes.
If changes to the scope of the project are agreed upon by both parties, the [Company] will submit a revised invoice reflecting the adjusted cost. The [Investor] agrees to process payment in accordance with the revised invoice within [X] days of receipt.
Payment run clause with progress payment schedule
This version includes a progress payment schedule.
The [Company] will submit invoices for payment based on the percentage of the project completed, as outlined in the progress payment schedule. The [Investor] will pay each invoice within [X] days, based on the agreed-upon percentage milestones.
Payment run clause with reimbursement of project-related expenses
This version includes reimbursement of expenses.
The [Investor] agrees to reimburse the [Company] for all reasonable and pre-approved expenses incurred during the course of the project. These expenses will be invoiced separately from the project payments and must be paid within [X] days of the invoice date.
Payment run clause with performance-based payments
This version includes performance-based payments.
Payments will be tied to the successful completion of defined performance criteria. The [Company] shall submit invoices upon achieving each performance milestone, and the [Investor] agrees to make payments based on the successful completion of each milestone.
Payment run clause with holdbacks for work quality
This version includes holdbacks for work quality.
The [Investor] may hold back [X]% of each payment until the final project deliverables are completed to their satisfaction. The holdback amount will be paid to the [Company] upon final approval of all project deliverables.
Payment run clause with project completion guarantee
This version includes a completion guarantee.
The [Investor] agrees to make final payment upon the [Company]’s completion of all project deliverables, provided the project is completed on time and to the satisfaction of the [Investor]. If the [Company] fails to meet the deadline, the final payment will be withheld until the project is completed.
Payment run clause with adjustments for project delays
This version includes adjustments for delays.
In the event of project delays caused by the [Investor] or external factors, the payment schedule will be adjusted to reflect the delay period. The [Company] will provide a revised payment run schedule based on the updated project timeline.
Payment run clause with project closing conditions
This version includes closing conditions for payment.
The final payment for the project will be made upon the completion of all deliverables and the closure of the project. The [Company] will submit a final invoice after all project conditions have been met, and the [Investor] agrees to process the payment within [X] days of receipt.
Payment run clause with pre-approved invoices for fast payment
This version includes pre-approved invoices.
The [Company] may submit invoices for pre-approved work at any time during the project. The [Investor] agrees to process such invoices promptly, within [X] days, as long as the work is aligned with the agreed-upon project scope and milestones.
Payment run clause with partial payment due at project initiation
This version includes partial payment at project initiation.
The [Investor] agrees to make an initial payment of [X]% of the total project cost upon signing this Agreement. Subsequent payments will be made according to the payment run schedule outlined in [Schedule X].
Payment run clause with milestone payments based on deliverables
This version ties payments to deliverables.
The [Investor] shall make payments based on the completion of deliverables as outlined in [Schedule X]. Each deliverable will have an associated payment milestone, and payments will be due upon completion and approval of each deliverable.
Payment run clause with payment for work completed to date
This version includes payment for work completed to date.
The [Investor] agrees to pay for work completed to date on a [monthly/quarterly] basis. The [Company] will submit an invoice detailing the work completed and associated costs, and the [Investor] agrees to process payment within [X] days.
Payment run clause with invoice dispute resolution
This version includes dispute resolution for invoices.
If the [Investor] disputes any part of an invoice, they must notify the [Company] within [X] days of receipt. Both parties will work together to resolve the dispute. The undisputed portion of the invoice will be paid in accordance with the agreed payment terms.
Payment run clause with payment via installment
This version includes installment payments.
The [Investor] agrees to make payments in [X] installments, with the first installment due on the project start date. Subsequent installments will be due on [monthly/quarterly] intervals based on progress milestones.
Payment run clause with direct deposit payment method
This version specifies direct deposit.
All payments under this Agreement shall be made via direct deposit to the [Company]’s designated bank account. The [Investor] shall ensure that all payment runs are processed through this method.
Payment run clause with advance payment for high-cost items
This version includes advance payment for high-cost items.
The [Investor] agrees to make an advance payment of [$X] for high-cost items required for the project (such as equipment or materials). The payment will be deducted from the total project budget, and the remaining payments will be made based on the payment run schedule.
Payment run clause with lump-sum payment on project completion
This version includes a lump-sum final payment.
The final payment for the entire project will be made in a lump sum upon completion and approval of all deliverables. The [Company] will submit a final invoice, and the [Investor] agrees to process payment within [X] days of receipt.
Payment run clause with payment upon review of progress
This version includes payments tied to progress reviews.
The [Investor] will review the project’s progress every [X] weeks. Payments will be made based on the completion of work as confirmed during these reviews. The [Investor] shall process payments within [X] days of each review.
Payment run clause with adjustments for budget overruns
This version includes adjustments for budget overruns.
In the event of budget overruns, the [Investor] agrees to adjust the payment schedule accordingly. Any additional payments required to cover overruns will be discussed and agreed upon before being processed.
Payment run clause with payment for verified milestones
This version includes payment for verified milestones.
Payments will be made for each project milestone upon verification by the [Investor] that the work has been completed to the required standard. The [Investor] will approve milestone completion and process payment within [X] days of verification.
Payment run clause with payment processing fees
This version includes payment processing fees.
The [Investor] agrees to cover any processing fees associated with payments under this Agreement. The fees will be included in the total project cost and will be paid alongside the regular payment runs.
Payment run clause with tax considerations
This version includes tax considerations for payments.
All payments made under this Agreement are exclusive of applicable taxes. The [Investor] will be responsible for paying any sales, use, or value-added taxes as required by law, and these taxes will be included in the payment amounts.
Payment run clause with accelerated payment for completed work
This version includes accelerated payment for completed work.
If the [Company] completes a portion of the project ahead of schedule, the [Investor] agrees to make an accelerated payment based on the value of the completed work. This payment will be processed within [X] days of the early completion.
Payment run clause with payment deferral for late deliverables
This version includes payment deferral for late deliverables.
If the [Company] fails to meet an agreed-upon milestone or deliverable deadline, the [Investor] reserves the right to defer payment until the delayed work is completed. The payment will be made within [X] days after the work is completed and approved.
Payment run clause with upfront payment for project kick-off
This version includes upfront payment for project initiation.
The [Investor] agrees to make an upfront payment of [X]% of the total project value at the project kick-off. The remaining payments will be made in accordance with the agreed-upon payment schedule based on project milestones.
Payment run clause with pre-project deposit
This version includes a pre-project deposit.
Prior to the commencement of work, the [Investor] will pay a deposit of [X]% of the total project cost. The deposit will be deducted from the final project invoice, with the remaining balance due upon completion.
Payment run clause with retention of final payment
This version includes retention of final payment.
The [Investor] may retain [X]% of the final payment until all deliverables are completed to their satisfaction. This retention amount will be paid upon final approval of the project and completion of any outstanding tasks.
Payment run clause with progress payments based on work hours
This version includes payments based on work hours.
Payments will be made based on the total number of work hours completed each month. The [Company] will submit an invoice that details the number of hours worked, and the [Investor] will process payment based on the approved hourly rate.
Payment run clause with dispute resolution for delayed payments
This version includes dispute resolution for delayed payments.
If any payment is delayed for more than [X] days, the parties agree to resolve the matter through alternative dispute resolution (ADR), including mediation or arbitration, as outlined in Section [X] of this Agreement.
Payment run clause with payment adjustment for performance shortfalls
This version includes payment adjustments for performance issues.
If the [Company] fails to meet performance expectations or quality standards, the [Investor] may adjust payments accordingly. Any reduction in payment will be based on the extent of the performance shortfall, as determined by the [Investor].
Payment run clause with approval of invoice by [Investor]
This version includes invoice approval by the [Investor].
The [Investor] will review and approve all invoices submitted by the [Company] within [X] days. The [Investor] reserves the right to request clarification or documentation before processing any payment.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.