Final Payment Agreement

CONSIDERING that the guilty party and the due party wish to enter into an agreement under which the offending party pays the due party the sum of the default of a payment plan, in accordance with the conditions set out therein. Try to negotiate terms 2-4 so that your payment is due immediately after closing. It probably won`t fly with the GC, but you can negotiate the other terms and get a faster payment. The American Institute of Architects produces some of the most widely used contract documents for construction projects. If you are a subcontractor for a project using the standard AIA A401 form for the agreement between the contractor and the subcontractor, you might wonder what the closing payment clauses mean. When do you need to make your remaining payment request? When will you get your retainage? Can you change the contract to get paid faster? We will look at some of the final payment clauses of the AIA A401 GC subcontracting agreement. We also interpret the language and suggest any changes you can request to protect against slow payments. The due party may assign this Agreement by written notice to the liable party. In the case of such an assignment, the assignee may define a new method of payment. This clause states that you must pay your subcontractors and suppliers before receiving your final payment. Maybe you are trying to negotiate the language in order to provide conditional deposit contracts with the amounts due, or you will indicate final declarations of waiver of the deposit 30 days after receipt of the final payment. This will give you the time you need to withdraw these final instructions and proof of payment without having to give the money.

If payments are not made in accordance with the contractual conditions (as set out in the first part of section 11), you can calculate a pre-agreed interest rate (it can be set in the contract in this section) or the legal rate applicable on the project site. Note that this contract sets out a payment plan for payment at the time of payment. They are only paid for a maximum of seven days after payment from the GC. To calculate interest, you must prove that the GC was paid and that it took more than seven days for you to be paid. Remember that you also have the right to request payment if your work is not causing a delay in payment. As soon as the GC invoices the owner for your substantially completed work, the architect will review the payment request and issue a payment certificate if approved. The GC will then have 30 days to pay you the balance of your contract. The “balance on your contract” depends on the terms of the main contract with the owner and the GC. We did it! You should carefully read the final payment terms of your contract and make sure you understand the terms you are accepting. If you are not satisfied with any of the payment terms, contact the GC and see if there is any leeway on your side.

Most contractors will hear you. However, you cannot accept the amendments. In this case, you need to decide if you want to work with them. Don`t cling to terms you can`t live with. . . .