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In this video, Jim Holt from Eras Builders discusses construction pay applications and invoices from builders to owners. He emphasizes the importance of having a clear pay application and invoice process outlined in the construction contract. Essential elements such as time frames, inclusion criteria, and dispute resolution procedures need to be detailed to avoid issues later. Holt also references another video regarding contract agreements, encouraging viewers to watch it to ensure all necessary components are included. Ultimately, he stresses the necessity of covering the pay application process in the contract between the owner and builder before proceeding.