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Home > Payment Terms > PRocess License Agreement

Process License Agreement:

Process license payments could be broken down into elements such as:

For royalty / license fee

  • A certain percentage of the total license fee at Client approval of Project Definition Report (PDR) or [Milestone Date] whichever is earlier.
  • A certain percentage of the total license fee at start of detailed engineering by Contractor.
  • Remaining Contract price at start of production by Client meeting product quality and other related parameters.

For Basic Design Work

  • A certain percentage of the fee at start of the project say at kick-off date of the Basic Engineering activities to be performed by Contractor
  • A certain percentage of the fee within 30/45 days after the start of the project (from kick-off meeting)
  • Remaining upon Client approval of PDR (Project Definition Report) or end of [Milestone Date] whichever is earlier.

Reimbursable elements

For the supervision such as construction advisory and process expert assistance services are payable on rates on a monthly basis, certified by Client.

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