Prime and subcontractor milestones
Coordinate agency subcontractor payouts without funding the gap yourself
Connect client approvals to a clear chain of prime and subcontractor milestones, reducing reliance on an agency bridging every payment from working capital.
No outcome, no fee. The stated Covalt Work platform fee is 3.5% when the agreed outcome lands. Covalt is non-custodial; configured payment rails process authorisation, capture and payout.
The difference
From payment friction to agreed conditions.
The old way
- Prime agencies may need to pay subcontractors before client funds arrive.
- Approval evidence and downstream obligations live in separate systems.
- Net-30 terms create timing gaps that the agency must finance and reconcile.
The Covalt Work way
- Record the client milestone and the related subcontractor obligation explicitly.
- Agree what evidence or approval triggers each stage before the work begins.
- Configure release dependencies so downstream settlement follows the relevant Pact rules; no payout should be described as guaranteed before those rules and rails are confirmed.
Explore the flow
See the approval cascade
A simplified illustration of how an agreed client milestone can connect to a downstream subcontractor milestone. Actual dependencies must be configured in the Pacts and supported by the payment rails.
Stage 1 · Client
Client milestone approved
Evidence and approval satisfy the agreed client-side condition.
Stage 2 · Prime agency
Downstream condition satisfied
The configured dependency is checked against the subcontractor Pact.
Stage 3 · Subcontractor
Rail release may proceed
Settlement follows the Pact rules and provider availability; it is not a promise of instant payout.
Questions, answered
Before you start a Work Pact
Can a subcontractor be paid only after client approval?
The Pact can document a dependency between the agreed client milestone and the subcontractor milestone. The actual release behaviour depends on the configured transaction rules and supported rail; confirm the sequence before relying on it operationally.
Does this eliminate all working-capital risk?
No. It can help make obligations and dependencies explicit, but it does not guarantee client approval, remove provider settlement delays or eliminate every funding gap.
Does Covalt Work hold client funds?
No. Covalt is non-custodial: it records the Pact, agreed conditions and outcome. Authorisation, capture and payout are handled by the configured regulated payment rails; availability and timing depend on the transaction and corridor.
What happens if a milestone is disputed?
The Pact keeps the agreed conditions and submitted evidence together so the parties can review the same record. Sonar and Guard Dog can provide matching and risk signals where configured; they are not a court, arbitrator or substitute for an agreed dispute process. A disputed outcome should follow the terms agreed by the parties and any applicable rail procedures.
Which payment rails can I use?
Available rails and settlement corridors depend on the parties, currency, transaction and current provider support. The available option is confirmed during setup; do not assume every rail or country is supported for every Pact.
Put the conditions in writing before work begins.
Use the existing wizard to define the parties, project value, milestones, completion conditions and evidence.
Start a Work Pact