The clause is drafted in favor of the service provider (e.g., contractor, consultant, developer, etc.) The clause covers fixed fees. It is favorable to the service provider because (1) it requires the client to pay for reasonable expenses, (2) it provides for a late fee for overdue payments and (3) allows the service provider to suspend services for overdue payments.

For additional payment clauses, see the following clauses: Expenses (Services Related), Expenses (Transaction Costs), Late Payments, Set-Off, and Taxes (Services).