Milestone

A checkpoint in a contract, often tied to a payment, such as “design approved” or “go-live”. Fixed-price software contracts are usually paid by milestone.

Related terms

Deliverable

A specific output the supplier must hand over, such as a design document, working release, report or training session. Payments are often tied to accepted deliverables.

Fixed price

A contract where the supplier agrees one price for the whole job or each milestone, and carries the risk if it takes longer. Common for websites and well-defined builds.