Why are "milestones" important in project contracts?

Milestones are significant in project contracts because they establish specific points that allow all parties involved to measure progress and performance against the agreed-upon contract requirements. By defining these key dates or deliverables, stakeholders can track whether the project is on schedule and on budget. Adhering to milestones helps ensure that the project remains aligned with its goals and objectives, facilitating accountability and enabling timely interventions if issues arise.

Additionally, milestones can serve as triggers for payments or other obligations within the contract, supporting the overall management of the project. This structured approach promotes clarity and helps prevent misunderstandings among the parties regarding expectations and deliverables throughout the project's duration.