Common use of Phase and Payment Overlap Clause in Contracts

Phase and Payment Overlap. Upon completion of each phase of the Software Project and upon CCSI's receipt of the Deliverables for that phase, PENCOM is authorized to begin the next phase of the Software Project unless: (1) CCSI has notified PENCOM to delay startup of the next phase; or (2) PENCOM has not received the startup payment for the next phase. If either (1) or (2) above occur and CCSI notifies PENCOM that there will be a delay between phases of more than one (1) week, then PENCOM shall have the right to reassign its employees and independent contractors on a short-term project for up to two (2) weeks between the applicable phases, and the schedule specified in Section 4.1 of this Agreement will be adjusted accordingly.