Make Progress Payments to Contractor

It is understood the contractor needs to be able to pay his workers, suppliers, and subcontractors in a timely manner. However, the contractor is not entitled to any money in excess of the cost of the work produced. Based on the agreed-upon Schedule of Values discussed in the Bidding Stage, progress payments are made to the contractor on a regular basis, usually monthly. The central idea is that the contractor only gets paid for the value of the work in place, less any retainage agreed to. In addition to fulfilling the contract obligations of the program, careful attention to prompt payment maintains the good will of the contractor and provides an effective bargaining chip in future negotiations. It is the Architect’s and Construction Specialist’s (as owner representative) responsibility to approve the payments. The Construction Specialist’s additional role is to facilitate rapid payment after approval.