Recoupment payment terms:

 Downpayment Recoupment should be applied in progress billing

o Example: 30% DP, 10% progress billing (2m accomplishment, 20m project cost)
o 2m minus downpayment recoupment (2m minus 30% of 2m) minus 10% of 2m
o What will be left is 2m – 600k minus 200k (they will pay us this)
o Formula: accomplishment less 30% of accomp less 10% of accomp
o We will keep doing this up until 100%
o We will produce guarantee bond (redeem 10% retention)

21.7m project cost

6.51m DP to start

Progress billing: 10%

2.17m every progress bill- 651k (30% of 2.17m) – 217k (10% of 2.17m)

We receive 1.3M every progress billing

1.3m * 10= 13m

6.51m DP

10% retention (2.17m)

21.7M total project