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In this video tutorial, the difference between payment application and payment certificate for contractors is explained. Payment application is the submission of a request for payment based on the percentage of work completed. As a contractor, you will not receive the full project value upfront, but in stages based on the work done each month. Payment certificate, on the other hand, is a document issued by the client certifying the amount to be paid based on the work completed. It is important to understand and differentiate between these two concepts in the construction industry.