This section might also define acceptable delays. These could apply to any and all elements of the specification, or might be restricted to key elements such as aircraft performance, weight and delivery-date provisions. Financial matters will cover the basic cost of the completion, a description of what is included and excluded, and a payment schedule. An agreement might require the client to pay vendors or subcontractors directly for certain systems or items of equipment. This section might also establish what currency applies to transactions.
Most contracts require progress payments.
These should be tied to the successful accomplishment of established milestones or other contract performance measures. Price escalation provisions may be included. While these are more customary in aircraft purchase agreements, particularly when an aircraft in development is involved, they can appear in some completion contracts, particularly if the undertaking is transnational. Escalation provisions could cover currency exchange-rate fluctuations, labor union contracts or raw material price fluctuations, among other factors. This section of the agreement might also cover assignment of responsibility among the parties for costs of ancillary items or activities, such as fuel for flight tests, ramp fees, inspections and a host of other costs.