Milestone Based Contracts
Milestone Based Contracts are a project management and contractual framework where work is divided into distinct, predefined phases or milestones, with payments tied to the completion of each milestone. This approach provides clear deliverables, timelines, and financial terms, often used in software development, consulting, and freelance projects to manage scope, reduce risk, and ensure alignment between clients and service providers.
Developers should use Milestone Based Contracts when working on fixed-scope projects, freelance gigs, or client engagements to mitigate payment delays, manage expectations, and track progress transparently. It's particularly useful for complex or long-term projects where incremental delivery and validation help prevent scope creep and ensure both parties are satisfied with the outcomes.