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702: The Application and Certificate for Payment form used by contractors to request progress payments. It includes a summary of the contract sum, work completed, and payments due.
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.
Difference between invoice and application for payment Invoicing is typically done once the work has been completed, and payment is due upon receipt of the invoice. Applications for Payment are used in construction projects where work is ongoing, and payments are made in stages (also called interim payments).
Unlike invoices, payment certificates are not subject to tax regulations. You can find out more about the information required on invoices in our article on the subject.
Payment Application or Payment certificate is the technical document to be approved by the client/ employer for the contractor yo raise the Invoice. Invoice is the commercial documents which contains the commercial value for the workdone as per the payment certificate. It also contains the taxation part.
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