Title 41, Public ContractsRelease 119-110
§4504 Conditions for Progress Payments
Title 41 › Subtitle I — Federal Procurement Policy › CHAPTER 45 — CONTRACT FINANCING › § 4504
Summary
Agencies must pay only for work that is actually finished and meets the contract’s standards, and contractors must give the information the agency needs to check that. Progress payments cannot be more than 80% of the value of completed work until the contract’s terms, specifications, and price are final. This applies to contracts over $25,000.
Full Legal Text
Title 41, §4504
Public Contracts, Source: USLM XML via OLRC
(a)Payment Commensurate With Work.—
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)Limitation.—
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)Application.—
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
Sep 22, 2026
Release point: 119-110