When a contractor makes a bid for a project, the construction
proposal form is used to list all of the materials, owner and contractor
information, the entire scope of the proposed project and what it does
not cover.
Some standard forms used by contractors for
construction projects include the AIA G702 and G703 which are the
Application for Payment and Continuation Sheet. These two forms are used
together for any project where the contractor has made an agreement
directly with the client. Using the G702 will also make the contractor
appear professional and organized while providing a great deal of
information to the necessary parties. Once the contractor has completed
the documents and signed the AIA 702, it will be notarized, go to the
architect for review, and finally to the owner. The owner will use these
documents as a reference to make payment to the contractor in the
amount that is indicated. These forms are used to ensure that accurate
payment is given to the contractor for the work that has been completed.
Another standard form used by the contractor is the release of
Lien. This form states that upon the condition of payment of a specified
amount, the contractor offers a lien waiver for work performed or for
items that have been provided according to a written change order. This
form ensures that the owner retains their property while protecting the
contractor’s right to payment.
Some of the forms that might be used throughout the project include a
contractor change request when a change in the price and/or the time of
completion is made or a transmittal form which may be used to send
information to any of the parties involved in the project.
Most
contractors work with a slim profit margin today. Getting appropriate
compensation on time is essential to the success of their business and
their ability to take on the next project. Using the right forms to keep
them organized throughout every project will help to ensure they are
protected from start to finish. Although many of these forms are
standard among contractors and construction companies, there are
differences between companies as well as from one project to the next.
Instead of ordering pre-printed forms, a more practical solution for
many companies is to use templates that can be downloaded to their own
computers and which offer the flexibility of customizing with their own
logo and the specific information that is needed on a project-by-project
basis.
Tags: AIA