That is how private research is funded, say at Microsoft Research. You agree on "deliverables" and get your money for each stage of your work. Deliverables include tech reports, source code, prototypes and things like that. You get nothing after your stop working on the project. For producers, i.e. researchers, this scheme is not worse than grants and getting money for published articles, citations etc., they don't get money for years after the publication anyway.