Category: Contracts & management
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
A payment application is the contractor's periodic claim for the value of work done to date, less previous payments, retention and advance recovery.
Why it matters on a project
An accurate, well-supported application with measurements and inspections is approved faster; late payment squeezes cash flow.
Worked example
Work done to date 800,000 SAR, previously certified 500,000, retention 10% of the difference 30,000: net payment 300,000 - 30,000 = 270,000 SAR before VAT.
Common mistake
Including unapproved quantities or uninspected work, so the whole application is returned and payment is delayed.
Frequently asked questions
What goes with a payment application?
Measured quantities, take-off sheets, approved inspections, variations and site photos.
How long until payment?
The contract sets it; a fixed period after certification protects cash flow.
Related terms
- RetentionA percentage withheld from each payment and released after handover or the defects period.
- Re-measured contractA contract paid on actually executed quantities multiplied by unit rates.
- Inspection request (IR)A formal request from the contractor to the consultant to inspect work before the next stage.
- Variation order (VO)A written instruction changing scope, quantity or specification, with its price and time effect.
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