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The Payment Schedule Many contractors may prefer to be paid once a month once they submit their invoice if it is recurring work or a long-term task. Contractors may also want a certain percentage upfront before work starts and the remainder after they deliver the completed project.
The "Schedule of Contract Documents" is a list of the documents that will be incorporated into the contract and the "Scope of Contract" is a succinct summary of the goods, works (including the physical extent of the works) and / or services to be provided under the contract.
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.
How to draw up a payment schedule in 7 steps + Free sample letter... Step 1: Have your client come up with the initiative. ... Step 2: What is feasible for your own organisation? ... Step 3: Check the creditworthiness of your customer. ... Step 4: Create a concrete payment schedule. ... Step 5: Record the payment agreement in writing.
A payment schedule must[2]: Identify the payment claim to which it relates; Indicate the amount of the payment that the respondent proposes to make; and. State the respondent's reasons for withholding payment.