.svg)
What is a G702?
A G702 is a document form used in the construction industry known as the Application and Certificate for Payment. It is issued by the American Institute of Architects (AIA) and is used by contractors to apply for payment for the work completed and materials supplied on a project. It details the contractor's progress on the project, summarizing the total project to date, change orders, previous payments, and the current payment due. The form needs to be signed by the contractor, the architect, and the owner, certifying that the work has been completed and payment is deserved.
Trusted by trade contractors across the country
Other construction terms
What is a Required Document?
A Required Document in the context of the construction industry refers to any official paperwork or digital file necessary for carrying out a construction project according to legal and professional standards. These include permits, blueprints, contracts, and safety regulations, among others. Permits are needed for legal consent to begin construction, while blueprints outline the design plans. Contracts spell out agreed terms between all parties involved and safety regulations ensure the well-being of all workers on-site. Incomplete or missing documentation can lead to project delays, unexpected costs, or legal consequences. Therefore, adequate organization and management of required documents are essential in completing a successful construction project.
What are Indirect Costs?
Indirect costs, in the context of the construction industry, are expenses not directly tied to a specific project, but are essential for the overall operation of a construction firm. They represent the expenditures that do not contribute to the building process directly, yet they are crucial for the smooth running of projects. Such costs could include administrative expenses like office rent, utilities, and salaries of personnel not active on the field but are involved in management, planning, or supervision. Other examples include insurance, security, equipment depreciation, and legal fees. Understanding indirect costs is key to accurate budgeting and financial control in construction projects. Failure to consider these costs can lead to a significant underestimation of the actual project cost, leading to financial losses. Therefore, contractors need to accurately factor indirect costs into their pricing to secure profitability.
What is a Cash Flows Statement?
A Cash Flows Statement, specifically in the construction industry, serves as a financial document that provides a detailed summary of a company's cash inflows and outflows over a certain period. This statement plays a crucial role in understanding the liquidity and solvency of a construction company as it helps track where the funds originate and where they get spent. It is segmented into three elements: operating activities (day-to-day operations of the construction business), investing activities (acquisition or disposal of assets), and financing activities (transactions with owners or lenders). It provides invaluable information for contractors, investors, and stakeholders, enabling them to scrutinize the financial health, operational efficiency, and investment potential of the construction company.
Ready to end the fire drill and get paid faster?
