What amount should be written in the payment stages specified in the statement of work if the contract specifies an advance payment?

Question

Individual entrepreneur

I draw up a contract with payment in parts prescribed in the statement of work. The contract itself specifies the total cost of work and an advance payment. Now I am writing the stages in the TOR and I don’t understand what exactly to write in the cost of the stage. Do you need to write there only the balance after deducting the prepayment or the full cost of the stage including some part of the prepayment?

Answer 1

There is a certain rule:
There is a total contract price;
There are stages of specific work and deadlines for their implementation.
An advance payment is something like a guarantee that the completed work will be paid for, and after the performer receives it, the work will begin.
Each performer must understand what his work consists of, and if there are stages of work, the cost of the stages.
Summary :
Divide the total cost of the contract by the number of stages - get the cost of each stage. ( If without prepayment )
Select 10-25% of the total cost of the contract - get the cost of the prepayment. ( Without cost of stages )
From

the cost of each step.

subtract

prepayment cost

- get the cost of each stage minus the prepayment and the cost of the prepayment. (The answer to your question)