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DEFINITIONS........................................................................................................ 3 Section 1112. APPLICATION...................................................................................................... 4 Section 1113. OWNER'S PAYMENT OBLIGATIONS............................................................... 4 Section 1114. CONTRACTOR'S AND SUBCONTRACTOR'S PAYMENT OBLIGATIONS.
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Republish 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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The Construction Contracts Act: protects retention money withheld under commercial construction contracts. helps to ensure a fair, balanced and timely payment regime. provides a fast and cost-effective adjudication process for people with disputes.
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The Construction Contract Act (CCA) is a set of laws that govern the relationship between contractors and subcontractors in the construction industry. It sets out the rights and responsibilities of both parties, and provides a framework for resolving disputes.
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The Construction Contracts (Retention Money) Amendment Act 2023 (the Amendment Act) was passed by the Government in April 2023. The Amendment Act strengthens the retention money regime by making it easier for subcontractors to access retention money without a court order, in the event of a head contractor's insolvency.
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A conditional payment clause is a clause that conditions payment on some other event. For example, contractors often include a clause in their subcontracts that conditions payment to the subcontractor on the contractor first receiving payment from the owner.
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The term “allowance” is commonly used in construction contracts. But what exactly does it mean? Generally, an allowance is an amount for the cost of items for which a party cannot determine with certainty when a bid or proposal is submitted.
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Fixed Price, or Lump Sum Perhaps the simplest and most commonly used payment mechanism is the fixed-price, or lump-sum, contract. Under this method, the contractor proposes the price to the party seeking the work (likely an owner or tenant) after estimating its costs and adding a profit margin.
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The amount at stake with these projects alone is enough to help you realize the importance of having a written construction contract, even when one is not required by Florida law. A document clarifies rights and obligations, so disputes are less likely to arise.
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