Long Term Relationships Assignment Example | Topics and Well Written Essays - 1500 words

Long Term Relationships - Assignment display caseThis essay discusses that specifically talking about contract financing or m maventizing, there ar m both methods for contract financing. Advance payments involve the payment of money to the contractor by the government before any services or goods have been received. By doing so, the government anticipates performance by the contractor under one or more contracts thereby liquidating them from payments. Since this method of payment is not performance oriented, it differs from other modes of payment that are performance-based. Advance payments are usually employed as a method to pay prime contractors so that they may pay subcontractors. Progress payments, as the name suggests, involves the payment of money as the work progresses and be are incurred along the way. However, this progress does not include payments based on completion of certain stages, overtone deliveries, partial payments in case of contract termination, and performa nce oriented payments. Legal and financial government institutions much(prenominal) as the Federal Reserve Bank may also guarantee loans to individuals so that contractors are financed in order to pay for the acquisition of goods and services. Such financing mainly comes from the private sector under the damage of the contract. Under particular statutes, progress payments for the completion of a certain stage are authorized which is utilize under agency procedures as a method of payment.