progress payment


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progress payment

A partial payment made during progress of the work, 1 on account of work completed and/or materials suitably stored.
References in periodicals archive ?
Once a progress payment is made by the local government to the general contractor, any subcontractor, or sub-subcontractor who remains unpaid 30 days after the payment due date may file suit, and is entitled to an evidentiary hearing upon 15 days' written notice.
(Lien waivers given with progress payments released lien rights with respect to work through stated dates).
United States, (24) the Federal Circuit outlined a complicated framework to assess whether a government official appropriately exercised his or her discretion in disbursing a progress payment to the contractor.
* For a large business, the customary progress payment rate and the liquidation rate are 80 percent, and for a small business the rates are 85 percent.
However, the PC manufacturer incurs substantial costs prior to this first progress payment, largely exceeding the advance payment amount: The engineering costs related to designing the development's concept design, securing its approval as well as drafting the shop drawings; the cost of material procurement necessary for the manufacturing process; The plant operating costs; the site delivery costs to shift the PC elements from the manufacturing plants to the construction site; and the site assembly costs.
The amount of any such progress payments shall bear a reasonable relationship to the amount of work to be performed, materials to be purchased, or expenses for which the contractor would be obligated at the time of payment.
You can be assured that DCAA will be scrutinizing financial reports for any unfavorable financial conditions in any audit they perform (e.g., progress payment audits, annual testing of contract eligibility for direct billing, billing systems, and interim voucher reviews).
On a larger job we may stop work if a progress payment is late, but we must be extremely judicious about that choice.
Unlike progress payment requests or other government invoices, there is no standard form on which to submit requests for PBP payments.
Contractors are usually requested to sign waivers of lien at the time of each progress payment. Waiver forms presented for signature at that time vary greatly in their wording and effect.
In addition to general disbursement controls, GAO found internal controls specific to construction contracts in which both the project representative and the contracting officer must approve each monthly progress payment invoice.

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