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1.2 Coordinate the Schedule of Values and Applications for Payment with the Contractor's Construction Schedule, List of Subcontracts, and Submittal Schedule. SCHEDULE OF VALUES A. The Contractor shall coordinate preparation of the Schedule of Values with preparation of the Contractor's Construction Schedule. 1. B. Correlate line items in the Schedule of Values with other required administrative schedules and forms, including: a. Contractor's construction schedule. b. Application for Payment.
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Fabricator FAQ
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Net 10, Net 30, or Net 60 (found on the invoice) simply indicates that the contractor's payment is due 10, 30, or 60 days from the date of the invoice, respectively. Risks: This is the most common payment term for independent contractors, and there are few risks associated with it.
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In the gnarly world of contractors, it's standard to ask homeowners to pay a 50% down payment on a job. Then they might want 25% more when they are halfway through the project (a “progress payment”), and the final 25% when the project is complete.
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A progress payment is a partial payment approach identified in a contract related to steps or phases toward the completion of the contract for goods and/or services. Use of this payment approach can require withhold of a percentage of payment pending completion of the entire contract and a bond.
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Lump sum contracts Lump sum contracts, also called fixed price contracts, establish a fixed price for all of the materials and labor required to complete a job. This is the most basic and common type of construction contract.
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The most common basis of payment in construction contracts is the unit price contract, which defines a fixed price per unit for the work completed. This method allows for flexibility in adjusting quantities and can accommodate changes in the project scope without significant renegotiations.
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Paid when paid, Net 30, and retainage are all common payment terms for contractors, and can all affect your cash flow in different ways. For larger jobs, progress payments allow you to bill monthly based on milestones or the amount of work put in place during the period.
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Here are four main construction contracts to choose from, plus their pros and cons: Lump-Sum Contracts. Cost-Plus-Fee Contracts. Guaranteed Maximum Price Contracts. Unit-Price Contracts.
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The most common type of construction payment is a net payment, meaning the invoice is due a set amount of days from the issue date. For longer projects, it's typical to pay an upfront deposit and then to pay the contractor monthly until the job is finished.
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