How it works
Milestone payments on verified work
Milestone payments tie each payment to a specific, evidenced stage of the works rather than to a calendar. The project is split into milestones, each with its own amount and its own proof, and money is released once that proof exists. With the capital already held, payment stops depending on the other party's cash position.
What a certification is
A certification — the payment application in US practice — is the document that records the work executed in a period and its value. It is signed by the supervising technician and is the basis on which the builder invoices. In practice it is the unit of measure for progress: without it there is no right to payment, and with it the amount is settled.
Why the industry gets paid late even when it certifies on time
Certifying and getting paid are two different things. The certification fixes how much is owed; payment depends on the payer's treasury. That is where the delay opens up: the average payment period in Portugal is 81 days, the longest in the European Union, and the cost of slow payment to US construction was estimated at $280bn in 2024, some 14% of sector spend.
Sources: EU late-payment studies · sector report, USA, 2024.
What changes when the capital is already held
If each milestone amount is set aside before work starts, in a regulated escrow account, payment stops being a promise and becomes a condition: the money is already there, and all that remains is to evidence the progress. That is how PactStream operates, releasing funds in under 24 hours from certification.
The eight steps of the cycle, and who covers them
- Commercialisation (PropertyJourney). The deal is originated and enters the cycle.
- Budget (CostPact). Line items are priced against an official price catalogue, not an estimate.
- Contract (CostPact → PactStream). The budget becomes milestones with an amount and a release condition.
- Custody (PactStream). Capital enters a regulated escrow account under PSD2, external to both parties.
- Certification (PactStream, over the works run in CostPact). Evidence is submitted and the supervising technician certifies it.
- Payment (PactStream). The milestone amount is released in under 24 hours.
- Fiscal control (FiscalCore). The payment is broken down into taxes, costs, profit and partners as it arrives.
- Handover and after-sales (PropertyJourney). Warranty, issues and the relationship with the end client.
Months pass between steps 2 and 7: that is the live phase of the works, and CostPact runs it with certifications, cost control, purchase orders, invoices and subcontractors.
Which division does what in a certified payment
| Division | What it contributes here |
|---|---|
| CostPact | Originates the certification: budget on an official catalogue, measurement, draft certification and its review. Plus the cost control, purchasing and subcontractors behind it. |
| PactStream | Holds the milestone amount, verifies progress with AI and the supervising technician, and releases it in under 24 hours. |
| FiscalCore | Breaks that payment down into taxes, costs, profit and partners, and computes Spanish forms 303, 111 and 130. |
| PropertyJourney | Where the project is a development, it originates the sale and closes with handover, warranty and after-sales. |
None of the four solves the problem alone: certifying without custody still leaves payment at 90 days, and custody without certification leaves the money idle with nobody to confirm the milestone was met.
What makes a certification pay itself
Proof that cannot be argued with. Every piece of evidence is recorded with geolocation, timestamp and cryptographic fingerprint, then passed through two filters: an AI analysis returning a 0–100 score with classified findings, and certification by the supervising technician on that same evidence. No release depends on a single instance.
Frequently asked questions
What is the difference between a certification and an invoice?
The certification records and values the work executed; the invoice is the tax document claiming that amount. You certify first and invoice afterwards, against what was certified.
Who signs a construction certification?
The supervising technician — the architect or quantity surveyor directing the works. They hold the technical competence to sign off the portion of work completed.
Can a builder be paid without waiting for the developer's cash?
Yes, when the milestone amount is held from the outset in a regulated escrow account. Payment stops depending on the developer's treasury and depends only on progress being certified.
What happens if the parties disagree about progress?
The amount stays in the escrow account until it is resolved. Neither party can draw on it unilaterally, because the account is external to both.
Cimbrium brings budgeting, custody, verification and taxation into a single cycle.
Request the dossier See the ecosystem