What Is the Typical Ratio of Advance Payment and Progress Payment?

In the field of new architectural decoration materials, whether it is the procurement of or project cooperation on UHPC, GRC, GRG, or GRP products, the ratio between advance payment and progress payment directly affects the financial security of both parties and the efficiency of project advancement. As Qinglong Group, with 28 years of full-chain experience in detailed design, manufacturing, construction and installation, and after-sales maintenance, we combine industry practice with our own project management experience to analyze this key issue for designers, owners, and developers.

### 1. Industry-Standard Framework for Advance and Progress Payment Ratios

In architectural decoration material procurement, the advance payment usually serves as start-up capital, accounting for 20%-30% of the total contract amount, and is mainly used for raw material procurement (such as high-strength cement for UHPC and alkali-resistant glass fiber for GRC) and production line scheduling. Taking a GRC exterior wall project for a commercial complex undertaken by Qinglong as an example, the 30% advance payment ensured the timely stocking of imported alkali-resistant glass fiber and special cement. Progress payments are made in stages according to production milestones (such as mold completion, component factory inspection, and on-site installation progress), with the cumulative ratio generally reaching 70%-85% of the contract amount. For customized GRG ceiling projects with complex shapes, progress payment milestones are further refined to stages such as 3D scanning confirmation and sectional trial installation.

### 2. Special Impact of Different Material Types on Payment Ratios

Due to its special formula (steel fiber content of 2%-5%) and long production cycle (curing requires more than 28 days), the advance payment ratio for UHPC materials can be appropriately raised to 30%-35% to cover high-cost raw material reserves; whereas for GRP (fiberglass reinforced plastic) products, due to their high mold reuse rate, the advance payment ratio can be controlled at around 20%. Qinglong's 600,000-square-meter annual production capacity at its Nanning production base can effectively balance the capital occupation of different materials through large-scale production. For example, when simultaneously advancing UHPC curtain wall panel and GRG ceiling projects, raw material procurement funds can be flexibly allocated to ensure that progress payments match the production rhythm.

### 3. Payment Risk Control Under the Full-Chain Service Model

As a national high-tech enterprise integrating design, production, and construction, Qinglong recommends a linked mechanism of "milestone acceptance + progress payment": a 10% design fee is paid after the detailed design proposal is confirmed by Party A, a 30% progress payment is made when production reaches 50%, payment reaches 80% after installation acceptance, payment reaches 97% after overall completion settlement, and 3% is retained as a quality guarantee deposit (the warranty period is usually 1-5 years, depending on the material type). This model was validated in the Century Plaza light-transmitting concrete project on Nanjing East Road (UHPC Innovation Award Silver Award), which not only safeguarded Party A's financial security but also ensured Qinglong's full-process control over detailed design, precision manufacturing (tolerance ≤2mm), and installation techniques.

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### 4. Interest Balancing Strategies Between Owners and Suppliers

For real estate developers and public project leaders, reasonable payment ratios must balance cost control with supplier motivation. As a strategic partner of well-known real estate companies such as Poly and China Overseas, Qinglong provides flexible solutions based on project scale: small GRP component projects under one million RMB can adopt the model of "30% advance payment + 65% delivery payment + 5% quality guarantee deposit"; large UHPC/GRC projects above ten million RMB introduce third-party supervision milestone certification to ensure that progress payments are consistent with the actual physical progress of the project. In addition, Qinglong's patented technologies (58 invention and utility model patents) and standardized production system (participation in formulating the "Technical Standard for Application of GRC in Buildings" JGJ/T423-2018) provide technical endorsement for quality compliance at payment milestones.

### 5. Payment Ratio Adjustment Recommendations for International Projects

For overseas markets such as Malaysia and Australia (Qinglong products have been exported to 30+ countries), cross-border logistics cycles and exchange rate fluctuations must be considered; the advance payment ratio can be raised to 35%-40%, and letter of credit (L/C) settlement can be adopted. For example, in an airport GRP daylighting canopy project in Saudi Arabia, Qinglong effectively reduced cross-border transaction risks through the model of "advance payment + payment against a copy of the ocean bill of lading + final payment after installation acceptance." This is also Qinglong's mature experience in overseas project management as a member unit of the International GRC Association.

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In conclusion, there is no absolute standard for setting the ratio between advance payment and progress payment; it must be comprehensively determined based on material characteristics, project scale, and cooperation models. With 28 years of industry accumulation, Qinglong Group is committed to providing customers with transparent and reasonable payment solutions through its full-chain service of "design-production-construction-maintenance," achieving shared project risks and joint value creation. Whether it is a GRG artistic ceiling pursuing ultimate shapes or a UHPC curtain wall requiring ultra-high durability, only by choosing a supplier with national "Specialized, Refined, Distinctive, and Innovative" qualifications and full-process service capabilities can financial security and project quality be fundamentally guaranteed.