Title 41 — Public ContractsRelease 119-73
§4504 Conditions for progress payments
Title 41 › Subtitle Subtitle I— - Federal Procurement Policy › Chapter CHAPTER 45— - CONTRACT FINANCING › § 4504
Summary
A federal agency must only make progress payments that match the amount of work actually finished under a contract. The contractor must give the agency the records or other proof the agency needs to check the work. The agency cannot pay more than 80 percent of the work done while the contract’s terms, specifications, and price are not final. These rules apply to contracts worth more than $25,000.
Full Legal Text
Title 41, §4504
Public Contracts — Source: USLM XML via OLRC
(a)The executive agency shall ensure that a payment for work in progress (including materials, labor, and other items) under a contract of an executive agency that provides for those payments is commensurate with the work accomplished that meets standards established under the contract. The contractor shall provide information and evidence the executive agency determines is necessary to permit the executive agency to carry out this subsection.
(b)The executive agency shall ensure that progress payments referred to in subsection (a) are not made for more than 80 percent of the work accomplished under the contract as long as the executive agency has not made the contractual terms, specifications, and price definite.
(c)This section applies to a contract in an amount greater than $25,000.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 450441:255(e).June 30, 1949, ch. 288, title III, § 305(e), as added Pub. L. 103–355, title II, § 2051(e), Oct. 13, 1994, 108 Stat. 3304, as amended Pub. L. 104–106, title XLIII, § 4321(a)(4), Feb. 10, 1996, 110 Stat. 671.
Reference
Citations & Metadata
Citation
41 U.S.C. § 4504
Title 41 — Public Contracts
Last Updated
Apr 6, 2026
Release point: 119-73