Spread Out Payment Certificate For Free

Pay if paid clauses dictate that the main contractor will pay the subcontractor for the completed work only if he is paid by the project owner. If he is never paid by the owner (due to insolvency of owner, dispute or any other reason), he is not obliged to pay the subcontractor at all.

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.

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.

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.

Document G702®?1992, Application and Certificate for Payment, and G703®?1992, Continuation Sheet, provide convenient and complete forms on which the contractor can apply for payment and the architect can certify that payment is due.

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.

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.

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.