GCPay Pro: Create AIA G-702 and/or G-703 style billings automatically in GCPay. ✅ Pro: AIA billing has many advantages for subcontractors – it’s customizable, commonly used, and gives subs rights for non-payments from general contractors. AIA billing is a form of progress billing that uses specific documents (the G-702 contractor application for payment and the G-703 continuation sheet). Since 1992, AIA billing has been the standard for contractors to follow when submitting documents to architects. ⛔ Con: Time-consuming payment applications are put together more than once during a project. ✅ Pro: You’re paid as you go and can resolve disputes before the project is over. Progress billings are created based on the percentage of completion work to date so payments are made at agreed upon points in the project. Progress billing is when contractors submit a new payment application before the deadline of each pay period for work and materials. ⛔ Con: There’s no room for error and any unforeseen changes that occur during the project will cut directly into your profit. ✅ Pro: You have a clear expectation of the work needed and since the price is predetermined, if you finish underbudget, those savings are yours. Lump sum contracts are best for smaller projects with known scopes of work. You’ll also hear lump sum contracts referred to as fixed price or stipulated sum contracts. A lump sum contract sets one price for all work on the project. This is the most basic type of construction contract. Let’s review some of the most common construction contracts ↓ There are threats and benefits to each construction contract as it pertains to billing. Things like project duration and indirect costs should be considered when selecting a billing method. The billing method of your construction contract is an essential detail and is based on the nature of your contract. A contract should protect the general contractor and the owner. ![]() Construction contracts are legal agreements where the owner and contractor agree on the project and payment. There are various construction contract types, each defined by how the payout is made, timeline for payment, and what you’re liable for.
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