In this video, I'll be giving a brief insight on the topic payment application summary payment application
is a common term used in a community service and preparing and payment application is one of the key
responsibilities of a contractor.
So let's understand what a payment application is.
Payment application has other names used by different organizations, like some call it a progress application.
Some use the term running account booths and then some call it just an invoice.
This document basically converts your physical works executrix site into revenue.
The way to prepare it, when to submit it and the supporting documents to attach it or mention in the
contract agreement of the project applying for your payments, start with the advance payment application,
the amount for which will be as stated in the contract.
Then as the work begins at site, interim payment applications comes into picture, which is submitted
every month based on the work progress.
Then during work completion payment, the application made this statement at completion.
Then you will also have an application for your initial retention claims and finally the final payment
account.
So I'll be sharing example from which you will be understanding all these concepts more clearly.
A payment application.
Somebody has mainly two sections, additions and the directions from the main name.
It is clear what each section is used for and you will be understanding it more clearly in the example
which is following these two sections further divided into three columns, which are the previously
certified amount, the current month amount and the cumulative amount in the assembly will be getting
a clearer idea.
They've made some payment applications, so all the payment application throughout the project I've
tried to explain in this example.
So if you see your first payment application is for your advance payment.
So you can see the format, you can see that there are all the contractual details of the project,
the project description, the name, the contract, no description, which is what is application number,
the contracts of ending the contract.
Come on your contract advance that you're going to see the contract period and the who your client is
for the project management consultant.
And all these details have been mentioned here.
So that depends on different organization, what details are required.
And this is the basic structure of payment application.
The terms and the the style will differ between different organizations to be different.
So if you see this, the allegiance, each subsections of our region and.
Each subsection of the directions and adjustments.
So think that included all the all the substitutions that can come under a construction project where
you have the three columns which I mentioned earlier, the previous certified, the current claim of
the cumulative work done.
And there is one more column.
It's a matter just to get an idea of the percentage of how much work is completed and the percentage
of the advance recorded until now.
Then there are two more sections below that, does this give you an idea of how much damage has been
done?
Actually by flat land and based on the certification board and based on certification and the payment,
then what you have to receive will be.
Here, the advance payment would be considered as 10 percent of the total total of.
If you see it is the amount of work done plus the preliminary amount.
So basically your contract someone will be.
The Amazon, which you have been you have estimated for your preliminary annual total well done and
your attention is that 10 percent of considerateness, 10 percent Asian was contracted to be the attention
will be the amount of percentage of the total will return for each payment applications.
So here all of that is including all your variations material on site professional.
Some of us have included all these.
As the total work done until your contracts were done, all your other scope's also included, so retention
will be taken as a percentage of all these folks under the first payment prepared for claiming the advance
payment.
So 10 percent of your contract among those hundred thousand dollars.
So in the current plan will be under a thousand dollars.
This will be zero.
And your cumulative claim will be undertows.
And there won't be the retention of deductions only once the work starts.
All these deductions start again.
Some contracts specify that the work done should be reaching some percentage like 10 or 20 percent.
Only then the advanced recovery will start.
So it will depend on each contract.
So now let's see the second payment application.
If we see a second payment application, your previa, the first payment applications community will
be becoming your payment application.
No to previous certified one hundred thousand will become your advance payment and considering that
you finish some books during your first month.
So these are the amounts for each section that you completed and accumulated will be the sum of both
these.
Here, all the adventure galleries and your attention have been calculated, your growth amount will
be the total additions and your next one will be the amount after deducting from the gross all these
deductions.
So from after deductions and everything you see, you have to see when I'm on the phone at eight thousand
six fifteen in this current claim, in this current payment application.
So if you stick here, you see one hundred thousand previously.
So in total, the cumulative amount which you receive is two hundred and eighty thousand in which hundred
thousand you already received.
So remaining is 188 those.
So the percentage of conventioneer.
So if you go to the next payment application again, all your cumulative of the second payment, the
application will become your previous certified of your third payment application.
And again, similar to the second payment, the application you will then calculate the part has been
executed one year differences, for example, till your second payment application, you have to resort
to eighty eight thousand six fifty.
But here I am and just mentioned that you have received only two hundred thousand.
So in order till this payment application, you have to receive three eighty nine thousand then fifty
currently or one hundred thousand six hundred.
But since you received only two hundred thousand us.
So two hundred the total minus what you have received.
So three eighty nine thousand nine fifty minus two hundred thousand one eighty nine thousand nine fifty
is the one that you have to receive in spite of this.
Your work then is this much.
But since you not received the full amount that has been certified payment application to the balance,
then due to the sale till this payment application, three, including the remaining of this payment
application will be 118 and those and then 50.
The next one is assuming that your project is completed.
So that is payment application will be your statement that completion.
So all your books have been completed.
Everything has been mentioned.
If you see here, the material on site has become zero.
That is because whatever material that has come to this idea of you place it for your works.
So automatically you will be having some unmourned for this book under work done.
So this should automatically become zero.
So again, after deductions, everything, finally you have to receive at the completion stage, you
have to receive an amount of Manetti two thousand six fifty.
After all the directions delayed you, you have received three eighty two thousand nine fifty.
So.
We are assuming that actually you had to see creatinine thousands of people in payment application,
three of you just assuming that we received only three eighty two thousand fifty for the remaining of
ninety to two thousand six, minus three eighty two thousand to receive.
And this payment application.
Now, after that, you're claiming your first retention claim and the completion, your retention,
the total retention that has been detected is a hundred two thousand eight fifty USPI.
So your first retention claim, you can claim only half of it at the stage of completion because the
remaining half you can complete only after your fixed period, which is usually one or two years before
that.
If you see all your previous cumulative claim of payment application for will become your previous of
your retention claim that payment application and your current claims as well, because you are only
claiming your attention.
So here, if you see your attention, please, half of hundred and two thousand eight fifty philosophy
plus indeed you're claiming it as your current claim and finally your claim will be fifty one thousand
or twenty five.
So again, you have to receive one point zero three four zero seven for US dollars until you including
your first claim, you have just received nine seventy five.
So remaining will be your current on that.
You receive this payment.
Finally, your final payment.
So I've just considered.
So for example, the final payment application is if during the statement at completion, if you miss
out something or if the plan does not satisfy some summer months, you can claim it in your final payment
application.
But this is your final payment application.
You will be also giving the statement that there will be no further payments due for you.
So whatever your claim, you have to claim on your final payment application that is considered as your
final payment.
So after that, you have no right to claim further.
So here I am assuming that with the retention remaining 50 percent of retention, you must total variation
of eight thousand.
Some claim that five thousand also in this current.
And if you see your in your previous written first retention claim, the sixty one thousand will become
your previous of your.
Final payment application and the remaining 50 percent will become your current claims or tautly, your
retention was under in 2000 in your final application, you have claimed the entire retention again,
totally.
If you see your finally, you have to receive an amount of one zero nine to five hundred, including
all your retention, all you have done, your payments that you received till date is only one zero
two seven zero seven.
So this minus this total net cumulative one minus whatever payments to date will be your final payment
application, not one that you will be you will have the right to receive.
So if you see if you just you can disclose to the total amount.
See one zero nine zero four.
And these are all the amounts of work done.
Actually, you don't know the amount of three hundred thousand dollars worth of those and proportional
sum of thirteen thousand variations to India, including all this.
The total works with children, which you have the rates to get.
The money is one zero nine zero five hundred that has come here, one zero nine zero finds that this
final payment that is due to the concept of payment application is Kladno.