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Progress Billing Example

Find a progress billing example below.

Progress Billing Example


OWNER: Business X, LLC.


For and in exchange of the sum of $, the sufficiency of which is hereby acknowledged, the undersigned Contractor, subcontractor, consultant, materialmen or laborer (hereinafter the “Undersigned”) warrants and represents as follows:

(1) The Undersigned has been employed by Business X, LLC. to furnish labor, materials, or services in connection with the construction of improvements on or to the above referenced project.

(2) The Undersigned has performed all labor, materials, or services required under its Contract, Subcontract or Purchase Order in full compliance with all terms and conditions thereof, and all applicable plans and specifications.

(3) Any and all contractors, subcontractors, laborers, suppliers and materialmen that have provided labor, material, or other services to the Undersigned for use or incorporation into the construction of the improvements to the Project have been paid in full for all amounts due and owing to them on the Project, or shall be promptly paid in full from the proceeds of the payment referenced above and there are no outstanding claims of any character arising out of or related to the Undersigned’s activities on or improvements to the Project. If this Waiver is signed by the Prime Contractor, then attached hereto as Exhibit A is a complete list of all subcontractors and suppliers retained by such party as of the date of this Waiver.

(4) The Undersigned waives and releases any and all liens, lien rights, claims of liens, and any other claims for payment for labor, material or equipment of any type or description that it may have against the Owner, the Owner’s Project Manager, the Owner’s Engineering Consultant, the Architect for the Project, the Prime Contractor (if this Waiver is signed by a subcontractor or supplier) and/or any person with a legal or equitable interest in Project, arising out of or in any fashion related to, any labor, materials or services furnished by, through or under the Undersigned on, or used in connection with, the Project, without exception.

(5) This Final Waiver and Release constitutes a representation by the Person signing this document, for and on behalf of the Undersigned, that the payment referenced above constitutes full and complete payment for all work performed and costs or expense incurred (including, but not limited to, costs for supervision, field office overhead, home office overhead, interest on capital, profit and general conditions cost) by, through or under the Undersigned relative to the work of improvements at the Project, including all retainage. More specifically, the Undersigned hereby waives, quitclaims, and releases any claim of damages due to delay, hindrance, interference, acceleration, inefficiencies or extra work, or any other claims of any kind it may have against the Prime Contractor (if this Waiver is signed by a subcontractor or supplier), the Owner, the Owner’s Project Manager, the Owner’s Engineering Consultant, the Architect for the Project, and/or any other person or entity with legal or equitable interest in the Project.

IN WITNESS WHEROF, the person signing this document, acting for or on behalf of the Undersigned and all of its employees, subcontractors, laborers, suppliers and materialmen, executes this document this _________ day of _____________________ , 20_______ .


Title: _______________________________

This instrument was executed and acknowledged before me on this ____________ day of ___________________, 20___ , by _________________________ , on behalf of said entity.

Notary Public

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Progress Billing for a General Contractor

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Define Payment Terms

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Terms of Sale
Net 30 Credit Terms
Cost Recovery
2/10 net 30
Down Payment

Define Payment Terms

Define payment terms as the terms required for payment on a product, are a function of the service offering of a vendor. These terms are an extension of how a vendor wants to treat a customer. Common policies are 2/10 net 30, pay in 30 days, payment terms l c (line of credit), cash on delivery, telegraphic transfer, and more. A payment terms discount may even be offered by vendors as a benefit of a purchase.

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Payment Terms Explanation

Payment terms, explained as the terms which dictate when a vendor must be paid, vary in policy. Some businesses accept no payment terms: they receive cash on delivery (cod) or even before the product is given to the customer. Other businesses offer payment terms as a perk of becoming a client. These terms may be pay in 30 days, a 2% discount for paying within 10 days (2/1 net 30), and other terms which allow the customer to pay later.

Furthermore, vendor financing is another payment term. The occurs when the customer pays interest but is allowed to repay the cost of the product they have received as they see fit. A line of credit is a form of vendor financing when it is received from the provider of goods. Payment terms are often negotiable, so some businesses may have the policy of payment terms dnd. Dnd, here, means do not disclose. This generally means that the vendor will want to talk with the client to allow for assessment and negotiation of individual situations.

Additionally, payment terms and conditions exist. Conditions on payment may be as briefly listed above; cash on delivery (cod), payment is to be received in a foreign currency, and more. In this situation it is up to the vendor to decide the payment terms and conditions which should be offered to the client.

Additionally, certain payment methods may be required. Payment terms t t indicate that telegraphic transfer is required. Other methods differ greatly depending on the situations of both parties.

Payment Terms Example

For example, Joel has a company which provides cleaning of outdoor areas. Their business has many specialties that include pressure washing, chemical cleaning, and even cleaning residential back yards with dogs and other pets. This industry also requires many products and tools for operations.

Joel needs a new pressure washer. To get this item, he will purchase it from one of his favorite vendors. Fortunately, they provide payment terms which Joel appreciates.

This company offers 2/10 net 30 terms. This means that Joel can pay within 30 days of receive a 2% discount by paying in 10 days. Joel likes this because it will allow him flexibility in his decision making.

With these terms Joel decided to pay in 10 days. By receiving the discount, he has more cash to use on his business. With payment terms like this, he will stay with this vendor for a long time. For more ways to add value to your company, download your free A/R Checklist to see how simple changes in your A/R process can free up a significant amount of cash.

Define Payment Terms

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Define Payment Terms

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Damage Claim

See Also:
Secured Claim
Unclaimed Property
Evaluating and Renewing Employee Health Insurance Plan
How to avoid additional insurance premiums
Third Party Insurance

Damage Claim Definition

A damage claim, defined as the claim of damages, to a liable or insuring company, which result in financial loss from an associated victim party, are a common legal concept. In a damage claim, there is a victim and an alleged damaging party. The damage claim seeks to repair the damages of the victim party when the damaging party is at fault. Usually, damage claims come in the form of monetary payment. Other times, the damaging party is responsible for seeing that the damages are reversed or fixed. In either instance, the damaging party will most likely make a payment, either to the victim or to the service provider who fixes the damage. A full damage claim report will be needed to present the case to vendor, insurer, or court officials.

Damage Claim Explanation

A damage claim is explained as the path to reparations when one has experienced damage at the fault of another. It is common in the personal as well as the professional world. In business, a damage claim is particularly common. In many instances where two businesses are doing commerce with one another, they are connected through material as well as relational means. A damage claim can be made when one party is responsible for damage to the assets or business operations of another.

For example, if a company promises to deliver raw materials at a certain time but does not follow through on the promise, the purchaser can claim damages in the form of lost income. Due to the fact that the reseller was not able to make a sale, and perhaps even lost a client of their own, the vendor would be responsible because they did not fulfill their end of the agreement to deliver.

For example, a vendor can be responsible for reparation through damage claim when they have actually done material damage to an asset. As an example, at times a repair shop can damage other parts of a vehicle then they were asked to work on. In this case, the customer could file a damage claim against the car shop. This damage was done to a material asset rather than a vendor/client relationship.

2 Factors Damage Claims Relies On

Ultimately the success of a damage claim relies on two factors: success in negotiation or success in court. If a damage claim form is being filed with the insurance company of a vendor, the damaged party must persuade the insurer that their case is valid. Whereas if the damage claim is being filed with the actual damaging party, the damaging party must be persuaded that the damage is valid. If this does not occur, a lawyer should be contacted and court proceedings must occur. In this way, damage claims are either a negotiating process or a lawsuit. If an actual lawsuit for damages occurs, the judge and jury must be persuaded that the case is valid and damage has occurred.

Conversely, a damage claim release exists. This form is a contract which releases one party from the damages of another. These agreements occur in business, where one or both parties want to mitigate their risk by removing any occurrence of 3rd party damage.

Damage Claim Example

Jalpa is the owner of a business. Her company, a commercial agents commercial agents firm, sells products for some of the largest manufacturers of industrial supplies in the world. Jalpa has a business which grows off of the manpower and sales skills that it can retain. It uses tools to facilitate this work.

Recently, there has been an issue with one of the tools. As she sent one of the company cars in for work, it was damaged in the auto shop. The damage appears to be very substantial and may render the vehicle out of use. Jalpa blames the shop for the damage.

The shop does not want to be held responsible for the financial responsibility associated. It will not pay Jalpa for the work needed to replace the car. Jalpa knows the shop is responsible, but has few other options. She must hire a lawyer and take suit against the shop. There is no other option.

Jalpa talks to her lawyer. The process will start by sending a formal damage claim letter to the repair shop. She did not want things to come to this, but sees no other choice. She regrets the way things have gone on but has to move forward with her life. Though Jalpa is a nice lady, she sometimes has to take a stand. As she leaves for home that day, she resolves to set this all behind her.

Damage Claim

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Discount Payback Period (DPP)

See Also:
Discount Rate
Discounted Cash Flow Analysis
Discounted Cash Flow vs IRR

Discount Payment Period (DPP) Definition

The Discount Payment Period (DPP) refers to the period of time in which a payment on a purchase can be made for a discount incentive. A DDP can lead to advantages for both sides of the transaction. On one side, if the buyer makes the payment during the DDP, the buyer saves money and drives down costs. On the other side of the coin, by giving a discount based on an incentive to complete transactions earlier, the seller turns over the business cycle by receiving cash for the accounts receivable earlier than normal. As one can see, both parties benefit from utilization of the Discount Payback Period.

Discounted Payback Period Example

For example, Raincorp., housed in San Francisco, makes a purchase of merchandise from a different company, Dynamerch. The payment of the sale is due in 30 days with interest incurred afterward. During this sale, Dynamerch informs Raincorp that they will implement a Discount Payback Period. If Raincorp makes the payment in under 10 days, then a 2% discount will be deducted from the actual payment amount. If the payment is made in less than 5 days, then 6% will be deducted from the actual payment amount.

Raincorp makes the payment to Dynamerch in 4 days; therefore, Raincorp will receive a 6% discount on the merchandise payments they owe to Dynamerch.

Discounted Payback Period Explanation

The way in which the Discount Payment Period (DPP) is organized is very simple. The invoice that is given to the buyers is in a specific notation. This notation is interpreted in two very simple ways. In the example above, the notation for the discount would look like this: 2/10, 6/5, n/30. As said before, it is not very difficult to interpret these invoice short-hands.

For the first two notations, the first number represents the percentage discount that is to be given to the buyer upon completion of the incentive package.

The second number represents the number of days in which the discount package can be completed.

The third notation used is no more difficult than the first.

The only change occurs in the first character, the “n” is short for “net,” meaning that the net amount for the purchase is due on this date. In this case, the net amount is due 30 days from the date of the purchase.

Discount payment period, Discounted Payback Period


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Commercial Lease

Commercial Lease Definition

A commercial lease generally speaking refers to the use of office space, warehouses, or even the land itself without the hassle of ownership. These assets are used in return for periodic payments or commercial lease payments.

Commercial Lease Explained

Commercial leases have several advantages over simply owning the fixed assets, but also have a few drawbacks. One of these commercial lease advantages is that they provide flexibility for a company to grow. Because a company is not buying up an entire amount of a fixed asset it allows that company to take on more leases and grow more quickly. Commercial lessees do not have to worry about price fluctuations because they do not own the property they are using.

A major advantage is that a company has the ability to write the periodic payments off as expenses for tax purposes. This means that a company can see major savings making the lease option lucrative to many companies.

One disadvantage is the renegotiation process. If the company has been successful, then the lessor will often drive up the price on a commercial lease. But if the company is tied down to the property, then the increased cost will become necessary driving profits down. If the company would like to move locations during the middle of the lease it is often difficult to do so without paying a very high nominal fee. Despite these disadvantages commercial leasing is often a lucrative and good business practice for many companies.

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commercial lease

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commercial lease

See Also:
How important is personal credit in negotiating a commercial loan?
Commercial Risk
Capital Lease Agreement
Lease Agreements
Operating Lease

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