Common use of 1Compensation Clause in Contracts

1Compensation. The Contractor will be paid [Explain how the Contractor will be paid]. Examples: “in accordance with the breakdown of costs as set forth in Exhibit D.” or “Following acceptance of the deliverables described in this Contract.” Note: Exercise caution if payment to the Contractor if based on an hourly rate. If deliverables can be succinctly defined, it is generally preferable to structure payment based on the successful completion and acceptance of specific tasks or deliverables.