An interim payment regime with reference to milestones achieved, rather than value, is not uncommon. It is often found in energy projects, for example, where these can include mechanical completion, testing, and commercial operation milestones. 

Disputes as to when or how such milestones are achieved are also relatively common. The Court of Appeal judgment in Bennett (Construction) Ltd vs CIMC MBS Ltd [2019] EWCA Civ 1515 looked at just such a dispute. It concerned a subcontract incorporating the JCT form for the design, supply and installation of modular bedroom units for a hotel. Bennett was the main contractor and CIMC MBS (formerly Verbus) the subcontractor. The modules were to be manufactured in China to a prototype and then fitted out at the factory under CIMC’s supervision. They were then to be signed off and snagged at the factory before being shipped to the UK. 

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