Payment Core Concepts
This schedule allocates the entire Contract Sum into tracked line items and is used to verify and prevent over‑billing.
What is the Schedule of Values?
Once an item is paid for on an approved application, this legal event occurs in favor of the owner.
What is Title Transfer to the Owner?
About how long is the payment process for a subcontractor from submission of application to receipt of a check?
What is about 30 days?
These three common submittal types illustrate how the work will conform to the contract documents but are not themselves contract documents.
What are Shop Drawings, Product Data, and Samples
This party reviews, approves, or takes action on submittals with reasonable promptness per the submittal schedule.
Who is the Architect?
Put in order the chain of payments under the AIA documents.
What is Subcontractor to Contractor to Architect to Owner to Contractor to Subcontractors.
These are some of the reasons the Architect may withhold certification on payment applications.
Defective Work, Work not complete, failure to pay subs,
On a private project, what is the Contractor or Subcontractor last means effort to get paid?
What is the Construction Lien Process?
This is a full-scale construction of a section of the building so the Architect and Owner can review aesthetics and performance.
What is a mockup.
This party must maintain a copy of approved submittals and samples on site and deliver them for record at closeout.
Who is the Contractor?
Which party certifies the Contractor's Application for Payment?
Who is the Architect?
This is the primary reason for the Owner to include a retainage provision in contracts.
What is to ensure that the Work is completed.
What is a typical, industry standard retainage amount expressed as a percentage in a contract?
What is about 5-10%?
These drawings show integration and coordination with the project’s plans and specs.
What are Shop Drawings?
This party is responsible for preparing submittals.
Who are subcontractors?
What items are typically included in an application for payment?
What are Work in Place, Materials Stored on Site, and Material Stored off site (conditionally)
The Contractor may do this if the Owner fails to pay within contractually stipulated time frames.
What is Stop Work?
What party is responsible for coordinating the submittals including the preparation, review, and construction of mockups?
Who is the Contractor?
The contractor must create this document promptly after award, coordinate it with the construction schedule, and allow reasonable review time.
What is the Submittal Schedule?
For design delegation, the contractor may hire licensed third‑party designers, but must coordinate with this role to align with the design intent.
Who is the Project Architect?
Payment does not equal this—meaning certification and payment alone don’t waive nonconforming work or warranty obligations.
What is Acceptance?
If the Contractor stops Work for nonpayment, the contractor is due this for costs related to stopping and restarting Work.
What is a Change Order?
Retainage amounts are intended to withhold what part of a Contactor or Subcontractor cost structure until the Project is complete.
What is Profit?
Requirements for submittals are found in in these two places?
What are Specification Division 1 - General Requirements, and in the technical specifications in the Project Manual.
In which part of the technical specification sections can Contractors and Subcontractors find the requirements for Submittals?
What is Part 1?