milliuppgjöri

Milliuppgjöri, a term originating from Icelandic, broadly translates to "interim settlement" or "interim payment." It refers to a payment made before the final completion or delivery of a project, service, or good. This concept is often encountered in contractual agreements where the total cost is substantial or the project duration is extended.

The purpose of milliuppgjör is to provide partial compensation to the provider for work completed or resources expended to date. This helps manage cash flow for the provider and can also serve as a milestone indicator for the client, demonstrating progress. The specific terms and conditions for milliuppgjör, including the amount, timing, and triggers for payment, are typically stipulated in the initial contract.

Common scenarios where milliuppgjör might be applied include construction projects, software development, large-scale manufacturing, or long-term service contracts. For instance, in a building project, a milliuppgjör could be paid upon completion of the foundation, with subsequent interim payments scheduled at various stages of construction, culminating in the final settlement upon project handover. The exact nature and frequency of these payments are subject to negotiation and contractual agreement.