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Before any checks are sent, contractors are asked to prove what has been completed, delivered, and more with a payment application. A payment application is a collection of documents requesting payment for completed work or materials in place.
What is an application for payment?
The billing process consists of two contract documents, or payment application documents, G702 and G703, that track previous payments and current payments. These forms work together to provide a clear breakdown of the work completed and the corresponding payments.
What is an application for payment?
An Application for Payment is a document that a contractor or subcontractor sends to the client or main contractor to request payment for work that has been completed. The Application for Payment includes a detailed breakdown of the work done, the percentage of work completed, and the amount that is due to be paid.
What does payment application mean?
Payment Application Definition. The Payment Application Screen processes formal written requests for payment by a contractor for work completed on a construction contract. Payment applications are processed by contract line item, each of which is associated to a capital project component.
How do I write a payment letter to a contractor?
Your letter should include all the pertinent details about your work, the invoice you sent, and when you expected payment. Also include: A demand for a specific amount of money owed. How the payment should be carried out (for example, in full or by incremental payment)
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