Chapter 15 Payments

Question 1

Periodic Payments

Answer 1

Generally on monthly basis

Question 2

Unit Price Contracts

Answer 2

Similar to lump sum contracts.

Payment is based on the unit prices as bid and the precise measurements of in-place field quantities.

Question 3

Cost Plus Contracts

Answer 3

Contractor is reimbursed for direct expenditures plus an allowance to cover overhead and profit which may vary depending on the nature of the expense.

Question 4

Lump Sum Contracts

Answer 4

Contract stipulates that before performing, the C will submit a schedule of values or cost breakdown of all work items for which payments will be requested.

Question 5

“Bury”

Answer 5

C will always try to “bury” certain costa in other job items

Question 6

“No excuse bonus”

Answer 6

Completion date will not be changed under any circumstance other than a disaster

Question 7

Project Closeout

Answer 7

Ensures quality of the project

Contractor must show that completed project meets the terms of the agreement between the owner and contractor.

Question 8

Final payment

Answer 8

Verifying punch lost items have been corrected and all aspects of project are in top shape

Question 9

Retainage

Answer 9

O typically holds back/retains percentage of money earned as an incentive for C to complete project properly. (5-20%)
Sometimes stops after 50% complete project

Paid w/in 30 days

Question 10

Sub C Payments

Answer 10

Subs have their own K with C

Usually paid when C is paid

Question 11

Pay-if-paid

Answer 11

Stipulates that C has no obligation to pay Sub C if O fails to pay