Pros & Cons of Progress Billing скачать в хорошем качестве

Pros & Cons of Progress Billing

What are progress payments? Should you use progress billing on your construction job? Learn about the pros and cons in the video and download a FREE progress payment application checklist here: https://www.levelset.com/blog/checkli.... Read the full blog post: https://www.levelset.com/blog/guide-t.... Related video content: What is a Schedule of Values (SOV)?:    • What is a Schedule of Values?   How to fill out the AIA G702 Application and Certificate for Payment:    • How to fill out the AIA G702 Application &...   00:00 - Intro 00:22 - What is progress billing? 01:10 - How should I submit my pay application when using progress billing? 01:55 - What are the benefits of progress billing? 02:21 - Get paid as you go 02:44 - Avoid going into debt 03:00 - Spot payment problems 03:29 - Stop work if you’re not paid 03:57 - What are drawbacks of progress payments? 04:43 - How can I speed up the progress billing process? #ContractorInvoice #ScheduleOfValues #AIAG702 -What is progress billing? (0:22) Progress billing is sending an invoice or payment application that requests payment for the percentage of the work that you’ve completed so far. Instead of waiting until the end of the job to bill, with progress billing it is possible to bill incrementally as the job goes along. -How should I submit my pay application when using progress billing? (1:10) Filling out a pay application correctly will generally require a clear schedule of values, or SOV. The SOV contains a line-item list of all of the work you will complete on the job, and the value of each item. The scope of work in the contract is the basis for the schedule of values. Two of the most common standardized payment application forms for subcontractors are the AIA G702 and ConsensusDocs 710. Both allow for progress billing. -What are the benefits of progress billing? (1:55) Progress billing provides benefits to everyone up and down the payment chain. They allow owners and/or prime contractors to review the subcontractors’ work before it’s complete, and resolve potential disputes before the project is over. The advantages we’ve covered in this video include: Get paid as you go, avoid debt, spot payment problems, and stop work if you’re not paid. -Get paid as you go (2:21) For subcontractors, one of the best reasons to use progress payments is that you don’t have to wait until the end of the job for payment. -Avoid going into debt (2:44) Subcontractors can pay expenses on a job as they go. If you have cash flowing in throughout the project, then you can pay your employees and bills on time. -Spot payment problems (3:00) If you are billing as you go, it will be easier to spot a payment problem. For example, if the first couple of payments are really prompt, and then they start to take longer and longer as you go along, it could be a red flag that the project is experiencing financial issues. -Stop work if you’re not paid (3:29) If there is a payment issue and you are billing as you go, you may have the power to stop the work until the payment issue is resolved. Many contracts stipulate your ability to do this to resolve disputes. -What are drawbacks of progress payments? (3:57) The main drawback to progress billings is time. It can take time to put together a payment application multiple times during a project. Some projects may only take a few minutes to invoice, but others, depending on the payment application requirements, can take significantly longer. Another drawback to progress billings relates to disputes about how much of the work has actually been completed. On a project with progress billing, these disputes can lead to work delays, since they might come up in the middle of the job. -How can I speed up the progress billing process? (4:43) There are a couple of ways. One is to establish a billing process that you follow diligently every time. Make a checklist of documents you need for your payment application each month, and who is responsible for collecting each one. You can download a free pay application checklist from Levelset (https://www.levelset.com/blog/checkli....