Construction Billing

[neeron07]

Hi can you explain to me the meaning of "TO DATE", "PREVIOUS", AND "THIS PERIOD: IN BILLING. Also I'am just confuse on what's the correct in Final billing because final billing means 100% accomplished and it goes like this:

I. TO DATE - 100% PREVIOUS - 0% THIS PERIOD - 100% or this one
II.TO DATE - 100% PREVIOUS - 10% THIS PERIOD - 90%

what's the correct between the two for final billing?
Thanks in advance.

 

[Ron]

All of your questions are contractual issues, governed by the general conditions of the contract. If you are inquiring about a "standard" form contract such as AIA, EJCDC or Consensus Docs, the instructions are usually contained on the form or in the supporting documents. In general, here is what they mean with respect to requests for payment:

1. To Date - This means for all activities up to the date of the request for payment or a pre-determined cutoff date (for example, the 25th of each month).

2. Previous - This usually refers to all previous or prior billings through the last billing period, but not including this billing period.

3. This period - This means exactly what it says...this billing period...not the last one or previous ones...just this one. Most billing periods are 30 days or one month, depending on the way the contract is set up.

I would suggest you get a copy of the instructions for the respective forms from AIA, EJCDC and AGC.

 

[neeron07]

Thank you for the help! How about my other question about the final billing?

 

[Ron]

The final billing should include the retainage (usually 10%), so your final number should be the contract amount (100%).

 

[Ron]

Also, you will sometimes get a "substantial completion" billing which will be at "Contract minus retainage", usually 90%. The contractor might then bill as his final billing, only the retainage amount. It can be done either way.

 

[neeron07]

Thank you very much for the help! Your advice is greatly appreciated.

 

[bimr]

The terms of payment should have been spelled out in the Contract General Conditions. You do not seem to be addressing issues such as retainage, change orders, etc.

Attached is an example of the EJCDC Contractor’s Application For Payment which should provide some additional details as to the procedure that the Contractor uses to request payment.

As Ron suggests, it is very important to read the Contract.

 

[neeron07]

Thank you for the example bimr

 

[MiketheEngineer]

Call my brother the lawyer - He doesn't practice engineering and I don't practice law - something we worked out a number of years ago!!

 

[Hoaokapohaku]

@MiketheEngineer...

Great agreement between you and your brother. Unfortunately, Cousin Banker often demands that an Engineer certify the correctness of the payment request before disbursing funds from the construction loan.