What are typical payment methods used in construction contracts?

The identified answer is correct because it encompasses a comprehensive range of payment methods commonly utilized in construction contracts.

Progress payments are made throughout the duration of the project, usually based on the percentage of work completed. This method helps ensure that contractors have sufficient cash flow to fund ongoing operations without having to wait until the project's completion for full payment.

Lump-sum payments are a fixed total agreed upon before the project begins, covering all work outlined in the contract. This method allows for clearer budgeting and financial planning by specifying one all-inclusive cost.

Cost-plus contracts involve payment for actual construction costs plus a fee for the contractor’s overhead and profit. This type of contract is often used when the project's scope is uncertain, allowing for flexibility as changes arise throughout the construction process.

Retainage payments refer to a portion of the payment withheld until the project is completed, ensuring that the contractor fulfills their obligations to the standards set forth in the contract. This practice acts as an incentive for contractors to finish the project completely and satisfactorily.

The other options lack the comprehensiveness or accuracy associated with typical payment structures in construction contracts. Thus, option C is the most representative of common practices within the construction industry.