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How to fix payment certificate

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hi in this video i am going to explain how to make a payment application for contractor and what is the difference between payment application and payment certificate starting right now so starting with the difference between payment application and payment certificate lets assume that you are a contractor and you have one job or one project and the project value for example is hundred thousand and the duration of the job is lets say five months so the thing is that you will not get the hundred thousand in the first day or in the first month there will be some payments that you will do you will prepare and you will submit for approval and this will be based on the percentage of work done this month you will get paid so when you submit or when you claim for some amount or for the works that you have executed this month the application that you submit is called a payment application so basically you go and you calculate the percentage or the worth of the works that you have executed t

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What is a certificate receipt?

Certificate of receipt or COR means a certificate issued by the scholarship granting organization to a taxpayer pursuant to Section 1000.500.

What is the purpose of retention bond?

In the case of the Construction Industry, a Retention Bond is a type of Performance Bond that protects the client after the completion of the contract. This provides a guarantee that the contractor (the Principal) will fix any issues after the job / project has finished (even after full payment has been made).

What is the maximum amount of a progress payment that the contracting officer may withhold under a fixed price construction contract?

However, if satisfactory progress has not been made, the Contracting Officer may retain a maximum of 10 percent of the amount of the payment until satisfactory progress is achieved.

What is a certificate for payment?

Certificate for Payment means a written certificate executed by the Authority indicating the amount that the Trade Contractor is entitled to be paid in connection with each Trade Contractor Application for Payment.

What is retention used for in construction?

What is the purpose of retention? Retention is a percentage (usually up to 5% of the contract sum) of each payment made under a construction contract which is withheld in order to try and ensure that works under the construction contract are completed to the required standard.

What does less previous certificates for payment mean?

Less previous certificates for payment. On this line, you will subtract previous payments that you have already received. When the architect or property owner approves your pay app, they will issue a certificate of payment. This is essentially the approval of your request, and receipt for payment.

Who is primarily responsible for approving a certificate of payment?

Contracting Officer (CO) serves as a docHubing officer with the responsibility for approving payments to contractors by verifying the accuracy and propriety of all documents and records upon which payment to the contractor is based and ensuring that the payment is legal, correct, and proper.

What is meant by retention in contracts?

Retention is a percentage of payment held back typically by a client or main contractor under a construction contract to act as security, or an assurance that the project works will be completed and that defects which may subsequently develop are remedied.

What is the purpose of retention?

The purpose of retention is to ensure that the contractor properly completes the activities required of them under the contract. Retention can also be applied to nominated sub-contractors, and the main contractor may also apply retention to domestic sub-contractors. In the US, this is known as Retainage.

What is the threshold for progress payments?

The Government will make progress payments to the Contractor when requested as work progresses, but not more frequently than monthly, in amounts of $2,500 or more approved by the Contracting Officer, under the following conditions: (a) Computation of amounts.

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