An application for payment is a construction document that identifies and presents a method on how a contractor will be paid. The application for payment contains the services or items that are being incorporated or jobs being executed under a contract agreement. It is usually presented as a list with the unit price of each item and the quantities of product/material being furnished.
Application for Payment Importance:
An application for payment provides both the owner and the contractor, with a method of controlling what items or materials have been provided by the contractor. It is a great tool to expedite payment and minimize error possibility.
· AIA Forms - G702 Application and Certificate for Payment,
· ConsensusDOCS 291: Application for Payment (GMP)-Facilitates the calculation and documentation of progress payments where the basis of payment is a guaranteed maximum price.
· ConsensusDOCS 292: Application for Payment (Lump Sum)-Facilitates the calculation and documentation of progress payments where the contract price is a lump sum.
· ConsensusDOCS 293: Schedule of Values-Provides a breakdown of the cost of elements of the work and should be used with the ConsensusDOCS application for payment forms (ConsensusDOCS 291 and ConsensusDOCS 292).
The Schedule of Value, is the sheet were items are listed along with their unit prices, quantities and summary of what has been paid and what is being certified for payment. It provides a general overview of the project status.
The Schedule #2 provide a comprehensive list of subcontractors that took part during the respective period, performing works under the specified contract. It is require to justify the amounts being certified under the schedule of values.
The Schedule #3 under the application for payment is a document that releaes and waivers of claims and stop notices from all Subcontractors furnishing labor, services, or materials covered by the certificate for payment.