Negotiating payment terms for a large municipal order of urban benches is a crucial step in the public procurement process. Typically, these contracts involve structured terms designed to protect both the city and the supplier. A common framework includes an initial deposit or mobilization fee upon contract signing, often ranging from 20% to 30% of the total contract value. This secures production capacity and material procurement for the supplier.
Following the deposit, progress payments are frequently tied to key milestones, such as completion of manufacturing, pre-shipment inspection, or delivery to the site. The final, substantial payment—usually 40% to 60%—is commonly due upon satisfactory installation and final acceptance by the municipal authorities. Many government entities operate on "net 30" terms from the date of invoice approval after acceptance, though this can vary. It's essential to clearly define retention clauses (a small percentage held for a warranty period), warranty terms, and payment triggers within the formal purchase order or contract. Always consult the specific bid documents or request a detailed schedule of values from the purchasing department, as terms can differ based on municipal budget cycles and funding sources.