Certificate for Payment

Definition

A certificate for payment is a written document forwarded to the general contractor by the architect, engineer, or owner, approving payment for work completed.

Purpose

The purpose of a certificate for payment is to authorize the release of funds to the contractor for the work performed, ensuring that payments are made according to the progress of the project and the terms of the contract.

Examples of Use

1. Monthly Billing: The architect issues a certificate for payment at the end of each month, approving the contractor's invoice for completed work.
2. Milestone Payments: Certificates for payment are issued upon reaching specific project milestones, such as completing the foundation or structural framework.
3. Final Payment: The final certificate for payment is issued upon project completion, authorizing the release of the remaining contract balance.

Related Terms

• Progress Payment: Partial payments made to a contractor as specific portions of the work are completed.
• Retainage: A percentage of the payment withheld until the project is completed and all terms are satisfied.
• Change Order: A document outlining modifications to the original contract, which may affect payment certificates.

Notes

• The certificate for payment ensures that the contractor is paid for work that meets the project's quality and scope requirements.
• It is a critical component in maintaining cash flow and financial accountability on construction projects.