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Occasionally the contractor may request a payment in advance in order to secure their time for the project, but this is not so common within major construction projects, more so in smaller, residential projects.
Cash on Delivery (COD) \u2013 Also known as Payable on Receipt or Immediate Payment, this simply means that payment is due when the project is delivered to the client. Line of Credit (LOC) \u2013 This lets the customer make a purchase on credit, settling bills in instalments over time.
309. Contracting Officer (CO) \u2013 serves as a certifying officer with the responsibility for \u201capproving payments\u201d 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.
An application for payment is a construction document that outlines how a contractor will be paid. The application for payment includes the services or materials used or the jobs that are being executed under a contract agreement.
Your architect, along with engineer(s) and other consultants, will prepare detailed construction documents before you put your shovel in the ground. In short, construction documents are written and graphic documentation for bidding and building the project.
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When advance payments are earned within a year (as is usually the case), they need to be listed as current liabilities. Whenever an advance payment is made, the accounting entry is expressed as a debit to the asset Cash for the amount received.
Almost half of all construction businesses offer their customers 30 days or more to pay their invoices. On top of that, 8 percent offer terms in excess of 45 days.
An application for payment refers to a request for interim payment, or complete payment, by a contractor or a subcontractor in the construction industry.
An application for payment refers to a request for interim payment, or complete payment, by a contractor or a subcontractor in the construction industry.
In typical stipulated-sum construction contracts, the architect is responsible for preparing Certificates for Payment indicating when and how much a client must pay the contractor.

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