When a city or municipality places an order for urban benches, the payment terms are typically structured to provide security for both the public entity and the supplier. Standard practice often involves a negotiated contract with specific milestones. Common terms include a modest upfront deposit upon contract signing, followed by progress payments tied to production milestones or delivery phases. Many municipalities utilize a net-30 or net-60 payment schedule after acceptance of the goods, meaning payment is due 30 or 60 days after the benches are delivered, installed, and formally approved by city inspectors. Some contracts may include a retention clause, where a small percentage (often 5-10%) of the total payment is held back for a warranty period to ensure quality. Financing or leasing options may also be available for large-scale projects. It's crucial for suppliers to review the specific bid documents or purchase order, as terms are dictated by municipal procurement regulations and can vary by jurisdiction. Clear communication regarding invoicing procedures and required documentation is essential for a smooth transaction.
What are the payment terms for a municipal order of urban benches?
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