Question

1. What is performance based payment?

2. What is the Prompt Payment Act? What does it provide?

3. What are progress payments and when are they used?

4. Does the government provide financing for the purchase of commercial items and if so where?

Answer 1

1. It is a salary or wage paid system based on positioning of individual, on their pay band according to the how well they perform . ExAMPLE: salesmen or production line workers

2. It is a comercial discipline which require business to :

   agree fair and reasonable payment terms with their suppliers

   ensure supplier's invoices are approved and paid with the terms agreed upon

encourage the same practices within the whole supply chain

3. Payments made as the work progress under a contract , upon the basis of cost incurred , of percentage of accomplishment of completion of work or a particular stage of completion . This term does not include payments for partial deliveries accepted by the govt. under the contract .

These are used with fixed price contracts , as these are based on contracts , so the payment may be cut back if contractor is not making a progress.

4. Government provides funds to purcahse the commercial items. petrol, crude oil and many other resources including security of its citizen. all these times it provides funds to other country to protect the country and its people from suffering any kind of crises.