15% — accepted requirements, architecture notes and delivery plan.
Software Development Payment Example
Software Development Milestone Agreement with deliverables the client can verify.
Software should be funded around demonstrable behavior, not arbitrary percentages of completion. This example connects requirements, working features, testing and handoff to visible contract states.
Example payment schedule
Divide software development into independently valuable stages.
Percentages are examples, not universal rules. Assign value according to the effort, risk and usable work delivered at each stage.
30% — working core workflow in the agreed test environment.
35% — remaining scoped features, integrations and documented tests.
20% — accepted defect fixes, deployment materials and repository handoff.
Define the deliverables
Every payment stage needs a concrete output.
Name the files, functions, access or evidence the provider must submit. Activity is not a deliverable unless the agreement also defines the resulting output.
Describe user roles, workflows, features and excluded behavior.
Name the supported environment, dependencies and external services.
Define repository access, documentation and deployment deliverables.
Provide test accounts, fixtures or sample data needed for review.
Acceptance and revisions
Review the funded scope instead of reopening the brief.
Acceptance criteria should let the client identify completion without relying on taste alone. Included revisions refine the agreed direction; new objectives require new scope.
Use feature-level tests instead of a subjective percentage complete.
Classify failures against requirements as defects.
Set severity rules and a finite acceptance-testing window.
Treat new features, platforms and integrations as added scope.
Control project risk
Write failure states before the project begins.
Define input deadlines, review periods, extension rules and settlement outcomes. A milestone schedule works only when both parties understand what happens after delivery, delay or cancellation.
Record assumptions about APIs, libraries and third-party availability.
Define security review responsibility and prohibited production data.
State maintenance and warranty obligations after final acceptance.
Preserve payment for accepted stages if later optional work is cancelled.
Frequently asked questions
Software Development Milestone Agreement
How should software development milestones be structured?
Use reviewable stages such as accepted requirements, a working core workflow, completed scoped features and tested handoff.
What are software acceptance criteria?
They are observable behaviors, supported environments, integration results, tests and handoff materials used to evaluate delivery.
Is a bug fix a new milestone?
A failure to meet an existing requirement is generally a defect; a new behavior or feature is additional scope.
Should the final milestone include source code?
If source code and repository access are part of the deal, list them explicitly in the final handoff criteria.
Review Contract Lifecycle →See the commercial solution and payment workflow.Read More Payment Guides →Explore crypto escrow, milestone contracts and safer internet work.Follow the Money →Understand verification, release, refunds and fee routing.Review the Risks →Understand what payment infrastructure can and cannot protect.
Rules before risk
Structure the agreement before money or work changes hands.
Create a wallet-based contract with defined milestones, deadlines, review rules and XRP settlement instructions.