Abstract
Progress Payment, in which contractors are paid at intervals based on work performed and incorporating agreed variation orders, is designed to ensure smooth and rapid currency circulation and to develop higher quality construction through closer relations between the employer and the contractor.
Two initial trial projects that adopted this payment syste m were monitored in fiscal 2001. The closer employer-contractor relations improved the variation order process. However, an increase in clerical work was identified. Further trials are recommended to seek more effective and efficient procedures for applying this kind of payment system.
