How do we invoice payment milestones?

Payment milestones have to be invoiced when reaching the achievements related to the specific milestones and as defined in the Milestone Payment Plan included in the contract. Each payment milestone is broken down to the amounts that pertain to each member of the Project team. Project Team members have to issue a specific invoice for the part of their competence. Subcontractors have to submit their invoices to the Prime contractor. The Prime contractor approves the invoices and submits them to ESA as specified in the contract. ESA checks if the required milestone achievements have been reached and payments will be made within one month directly to all contractors.
For example, if the payment plan agreed in the contract foresees the following breakdown:
Milestone M Amount

  • Company A (prime) 25 kEuro
  • Company B (subcontractor) 12 kEuro
  • Company C (subcontractor) 0 kEuro
  • Company D (subcontractor) 18 kEuro

Company A will have to issue an invoice for 25 k EUR directly to ESA. Company B and D will have to issue an invoice of 12 and 18 k EUR respectively to Company A for approval and forwarding to ESA. When ESA receives the invoices of Company B and D endorsed by Company A, ESA will proceed with the payment of the invoice directly to the accounts of Company B and D.