The payment application is used by subcontractors throughout America to make the procedure for receiving payments for work performed regulated and convenient for all parties to the process.
Such forms indicate the amount of payment paid for the work done for a certain period. This means that with these forms, you can receive regular payments even before the end of the project.
Usually, these papers take into account not only the terms of work but also the quality of the work done. Such a system helps to improve the level of quality of project execution without compromising the budget.
Form 702 is a kind of confirmation that the subcontractor has received payment for a portion of the project completed. This form must be signed by the architect and the employee to be valid. This form shows the costs of the project over the past period. Often Form 702 is required to file Form 703.
Form 703, in turn, is some interim report on the work done. This form is needed by the counter-correspondent and accounting since, with the help of form 03, you can track the progress of your project and the amount of work done. At the planning stage of the project, the architect and the contractor agree on how often this form should be provided, but most often about once a month.
The fact is that this paper is far from the easiest to fill out and submit. But at the same time, this is one of the most common forms of payment among architects and subcontractors.
It is important to fill out and submit the document correctly, as it will be difficult to correct mistakes after the paper has been submitted.
Below we will tell you about the most common mistakes that happen when filling out the form. We will tell you how you can avoid mistakes when filling out the paper to create a valid document.
Invalid Amount Specification
Since the employee issues an invoice for the work done, it is his responsibility to enter the correct data on paper. Some unscrupulous workers sometimes indicate a larger amount of work, even though this work has not been completed. This is done to get more money. Fortunately, such a scam is very easy to expose. If an incorrect amount of work is indicated, and therefore the amount of payment, further reports will not converge, and an error will be visible. Therefore, it is better to make the report correct once.
Incorrect Calculations, Calculation Errors, and Typos
If you incorrectly calculate the amount of work and the amount, your final reports will not converge. You should be very careful when calculating the cost of work. If you think that you cannot do it yourself, we recommend trying to do the calculations online or contact a professional. It is also worth checking the paper several times for typos and errors. It will be a shame if your paper is not accepted because of a tiny mistake.
Other Financial Forms
If you want to check out more financial documents that you could edit and fill in here, below are a few of the forms searched often by our visitors. Also, remember that you can easily upload, fill out, and edit any PDF at FormsPal.
Below we will tell you how to fill out Form 702. We will describe each step in detail so that you can handle it yourself.
It is important to remember that if you do not understand something from the wording or you cannot cope with the calculations yourself, you should seek professional help. This will help you avoid the risks associated with incorrect paper filling.
If you decide to fill out the paper yourself, then we recommend that you use our form-building software. This will provide you with the best results and will save you time.
You can fill out the form online or manually. In any case, you first need to download the form. Download forms only from official sites. Once downloaded, you can complete the form online or print the form and fill it out on paper.
1. Fill in the Left Side of the Top Row
First, enter the owner’s details by entering the name, address, and zip-code. After that, enter your (contractor’s) data, also entering your company name, address, and zip-code. Now it remains to enter the details of your project and architect. Enter the project name and project address in the project data. And in the data of the architect, indicate the name, address, and zip-code.
2. Fill in the Right Side of the Top Row
Specify the application number. It’s simple, and you just need to understand what the call is. After that, indicate the period of work in the column. In the “contract for” column, roughly describe the type of your work so that it is clear what kind of work you did on the project. Don’t forget to include the project date. If applicable, include the project number.
3. Complete the Contractor Payment App
In this part, you will first need to fill in items 1 through 9:
4. Sign the Paper In The Presence Of A Notary
The document becomes valid immediately after signing. That is why it is important to sign only in the presence of a notary. This requirement is mandatory for this document.
Below we will tell you how to fill out Form 703. We will describe each step in detail so that you can handle it yourself.
1. Fill in the Top Row
On the top line, you need to indicate the application number, application date, project number, and period.
2. Complete Column A
In column A, you need to indicate the product number. You can use the Format Wizard to indicate the item index, not the number. If there are many items, this will help you navigate.
3. Complete Column B
In column B, write a description for each item. The description should be short but sufficient. Indicate the materials and type of work.
4. Complete Column C
Indicate the cost of execution of each item.
5. Complete Column D
If this is your first application, you can leave this column blank. But if there were applications before, you need to make simple calculations to indicate the amount of the previous work. You need to add columns D and columns E of the previous papers.
6. Complete Column E
You need to indicate the cost of work for a certain period.
7. Complete Column F
Indicate the cost of materials that you bought during the specified period but have not yet used.
8. Complete Column G
Add the data from columns D, E, and F to get the value you want. To calculate the percentage of completion, you need to divide column G by column C.
9. Fill Column H
To fill column H, you need to subtract column G from column C. This will give you the required value.
10. Fill Column I
You can leave this column blank if you have fixed contract terms.