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A Payment Terms clause in a Terms and Conditions agreement is where you set out some key points regarding how you handle and accept payments.

A payment clause that obligates the Contractor to pay the subcontractor for satisfactory performance under its subcontract not later than 7 days from receipt of payment out of such amounts as are paid to the Contractor under this contract.

Subcontracting Clause This clause is important because it gives you control over who exactly the services will be provided by. If subcontracting is permitted, it should specify that the service provider cannot subcontract without your company's written consent, which you can withhold if you choose to.

In 1982, Congress passed the Prompt Payment Act to require Federal agencies to pay their bills on a timely basis; to pay interest penalties when payments are made late, and to take discounts.

The following is an example of a pay-when-paid contingent payment clause: The contractor shall pay the subcontractor each progress payment no later than seven working days after the contractor receives payment from the owner.

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.

Payment terms clauses can help mitigate the risk of non-payment, provide protection against chargebacks, or leverage your intellectual property rights by restricting access to content until after the customer has paid.

What is the Final Payment Certificate. The final payment certificate is a document that is issued by the employer to the contractor when the project is completed. This document serves as a formal record of the project's completion and serves to protect the interests of both the employer and the contractor.

This means that once the contractor or the sub-contractor sends the invoice for the services performed, they will be paid within 30 to 60 days, depending on the terms of the contract. For certain types of contracts, the industry may dictate sub-contractor payment terms.

Payment certificates are mainly used in the construction projects as the documents verified by the construction project owners, architects or engineers to keep an account of the work completed and is approved by the contractor.