Payment Application Procedures Clause Samples
The Payment Application Procedures clause outlines the steps and requirements for submitting requests for payment under a contract. Typically, it specifies the documentation needed, the timing and format of applications, and any necessary approvals or certifications before payment is processed. This clause ensures that both parties follow a clear, standardized process for payment requests, reducing the risk of disputes and delays by establishing transparent expectations.
Payment Application Procedures. Village shall make progress payments, deducting the amount from the Contract Price above on the basis of Contractor’s Applications for Payment on or before twenty (20) days after receipt of the Pay Application. Rejection of a Pay Application by the Village shall be within twenty (20) days after receipt of the Pay Application. Any rejection shall specify the applicable deficiency and necessary corrective action. Any undisputed portion shall be paid as specified above. All such payments will be made in accordance with the Schedule of Values established in the Contract Documents or, in the event there is no Schedule of Values, as otherwise provided in the Contract Documents. In the event the Contract Documents do not provide a Schedule of Values or other payment schedule, Applications for Payment shall be submitted monthly by Contractor on or before the 10th of each month for the prior month to the Project Consultant. Progress payments shall be made in an amount equal to the percentage of Work completed as determined by the Village or Village’s Project Consultant, but, in each case, less the aggregate of payments previously made and less such amounts as Village shall determine or Village may withhold taking into account the aggregate of payments made and the percentage of Project completion in accordance with the Contract Documents and Schedule of Values, if any. The Contractor agrees that five percent (5%) of the amount due for each progress payment or Pay Application (the “Retainage”) shall be retained by Village until final completion and acceptance of the Work by Village. In the event there is a dispute between Contractor and Village concerning a Pay Application, dispute resolution procedures shall be conducted by Village commencing within 45 days of receipt of the disputed Payment Application. The Village shall reach a conclusion within 15 days thereafter and promptly notify Contractor of the outcome, including payment, if applicable.
Payment Application Procedures a. On the invoice target date of each month, the Design-Builder will submit to the Commission Representative, an application for partial payment including a notarized affidavit stating that it has complied with the requirements of Section 16.02.8. The Application for Payment shall be submitted using such forms and in the order as directed by the Commission representative and shall conform to the following requirements, without limitation. The submission shall be one (1) original hard copy to the Commission Representative and at the same time submission electronically through the Commission's designated web based system. The form for the Application and Certification for Payment is attached as Article 25, Exhibit A. The Design-Builder must also provide a Design- Builder's Sworn Statement and Affidavit For Partial Payment, attached as Article 25, Exhibit B. The affidavit must be supported by receipts or receipted vouchers, and lien waivers, evidencing payments for such materials, services, labor, and payments to First-tier Subcontractors and all Minority owned business enterprises or Women owned business enterprises who are providing labor or material to the Project, together with a waiver of lien covering the amount for which the current payment is being requested and such other evidence of the Design-Builder’s right to payment as the Commission Representative may direct. A sample of the Design-Builder's waiver of lien for partial or progress payment is attached as Article 25, Exhibit C and the Subcontractor's waiver of lien for partial payment is attached as Article 25, Exhibit D. The application for partial payment will conform to approvals made by the Commission Representative at the payment review meeting. Article 25, Project Forms, contains the various forms used for payment applications.
b. Contract amounts are to include only those Change Orders that have been approved by the Commission as of the close of the current payment period. Payment Applications will be returned for revision if unapproved Change Orders are billed.
c. All Change Orders must be allocated to the affected line items on the sworn statement. Payment Applications will be returned for revision if the total Change Order is added as a new line item on the sworn statement.
d. All amounts reported on the MBE/WBE documents must agree with the corresponding line items on the sworn statement. Submit MBE/WBE participation summary with each application for payment which identifies participati...
Payment Application Procedures a. On the invoice target date of each month, the Contractor will submit to the Commission Representative, an application for partial payment including a notarized affidavit stating that it has complied with the requirements of this Section