Advance payment - Revision history

Designing Buildings at 09:22, 22 July 2024

2024-07-22T09:22:14Z

← Older revision		Revision as of 09:22, 22 July 2024
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	For more information see: Off site materials.		For more information see: Off site materials.

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Advance payment bond.		* Advance payment bond.

Designing Buildings at 09:51, 21 September 2020

2020-09-21T09:51:35Z

← Older revision		Revision as of 09:51, 21 September 2020
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	* Vesting certificate.		* Vesting certificate.

−	[[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 09:35, 9 July 2020

2020-07-09T09:35:26Z

← Older revision		Revision as of 09:35, 9 July 2020
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	* Advance payment bond.		* Advance payment bond.
	* Bonds and guarantees.		* Bonds and guarantees.
		+	* Down payment chain.
	* Ex gratis payment.		* Ex gratis payment.
	* Fair payment practices for construction.		* Fair payment practices for construction.
	* Off site materials.		* Off site materials.
	* Payment.		* Payment.
−	* Payment chain.
	* Payment notice for construction contracts.		* Payment notice for construction contracts.
	* Retention.		* Retention.

Editor at 16:06, 8 July 2020

2020-07-08T16:06:25Z

← Older revision		Revision as of 16:06, 8 July 2020
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	* Off site materials.		* Off site materials.
	* Payment.		* Payment.
		+	* Payment chain.
	* Payment notice for construction contracts.		* Payment notice for construction contracts.
	* Retention.		* Retention.

Designing Buildings at 08:36, 8 July 2019

2019-07-08T08:36:28Z

← Older revision		Revision as of 08:36, 8 July 2019
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	Several mechanisms are available to protect the client, however, none of these is fool proof. Judgement is necessary to assess the risk to the project, or the potential loss to the client versus the benefit of greater certainty of supply.		Several mechanisms are available to protect the client, however, none of these is fool proof. Judgement is necessary to assess the risk to the project, or the potential loss to the client versus the benefit of greater certainty of supply.

−	For ~~more information see: Off site~~ materials.	+	For example, a ‘vesting certificate’ or ‘certificate of vesting’ may be required from the contractor (or sub-contractors or suppliers), certifying that ownership of goods, plant or materials listed in a schedule will transfer from one party to the other upon payment and confirming that they will be will be properly identified, separately stored, insured and are free from encumbrances (such as retention of title).

−	~~= Find out~~ more =	+	For more information see: Off site materials.

−	=== Related articles on Designing Buildings Wiki ===	+	= Related articles on Designing Buildings Wiki =

	* Advance payment bond.		* Advance payment bond.

Designing Buildings at 16:52, 8 January 2018

2018-01-08T16:52:14Z

← Older revision		Revision as of 16:52, 8 January 2018
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−	Payment is the transfer between parties of some form of value (such as funds, services, assets) in an agreed exchange. This can be for goods, services or to fulfil a legal obligation such as a debt. The most common form of payment involves money although it can also take the form of ~~stock issues or~~ other ~~benefit~~, and is typically preceded by a bill or invoice specifying the amount due.	+	Payment is the transfer between parties of some form of value (such as funds, services, assets) in an agreed exchange. This can be for goods, services or to fulfil a legal obligation such as a debt. The most common form of payment involves money although it can also take the form of other benefits, and is typically preceded by a bill or invoice specifying the amount due.

	An advance payment, sometimes referred to as a down payment, or ex gratis payment, is when part of a contractual sum is paid in advance of the exchange, i.e. before any work has been done or goods supplied. Advance payments are typically recorded as prepaid expenses by the payer and recorded as assets on the balance sheet.		An advance payment, sometimes referred to as a down payment, or ex gratis payment, is when part of a contractual sum is paid in advance of the exchange, i.e. before any work has been done or goods supplied. Advance payments are typically recorded as prepaid expenses by the payer and recorded as assets on the balance sheet.

−	On a construction project, a contractor may request an advance payment to help them meet significant start up or procurement costs that may have to be incurred before construction begins. For example, where they have had to purchase high-value plant, equipment or materials specifically for the project.	+	On a construction project, a contractor may request an advance payment to help them meet significant start up or procurement costs that may have to be incurred before construction begins. For example, where they have had to purchase high-value plant, equipment or materials specifically for the project. In these instances, the client should require an advanced payment bond. This secures the payment against default by the contractor.
−		+
−	In these instances, the client should require an advanced payment bond. This secures the payment against default by the contractor.	+

	For more information, see Advance payment bond.		For more information, see Advance payment bond.

−	It is also sometimes necessary for the client to pay for items even though they remain ‘off-site’, for example, where a contractor has ~~themselves~~ made a large payment for plant or materials that have yet to be delivered to site, or if the client wishes to ‘reserve’ key items in order to protect the programme. However, this does put the client at risk, for example if the contractor or supplier becomes insolvent and the items are then not delivered, even though payment has been made.	+	It is also sometimes necessary for the client to pay for items even though they remain ‘off-site’, for example, where a contractor has made a large payment for plant or materials that have yet to be delivered to site, or if the client wishes to ‘reserve’ key items in order to protect the programme. However, this does put the client at risk, for example if the contractor or supplier becomes insolvent and the items are then not delivered, even though payment has been made.

−	Several mechanisms are available to protect the client, however, none of these ~~methods~~ is fool proof. Judgement is necessary to assess the risk to the project, or the potential loss to the client versus the ~~cost of~~ benefit of greater certainty of supply.	+	Several mechanisms are available to protect the client, however, none of these is fool proof. Judgement is necessary to assess the risk to the project, or the potential loss to the client versus the benefit of greater certainty of supply.

	For more information see: Off site materials.		For more information see: Off site materials.

Designing Buildings at 16:49, 8 January 2018

2018-01-08T16:49:55Z

← Older revision		Revision as of 16:49, 8 January 2018
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	Payment is the transfer between parties of some form of value (such as funds, services, assets) in an agreed exchange. This can be for goods, services or to fulfil a legal obligation such as a debt. The most common form of payment involves money although it can also take the form of stock issues or other benefit, and is typically preceded by a bill or invoice specifying the amount due.		Payment is the transfer between parties of some form of value (such as funds, services, assets) in an agreed exchange. This can be for goods, services or to fulfil a legal obligation such as a debt. The most common form of payment involves money although it can also take the form of stock issues or other benefit, and is typically preceded by a bill or invoice specifying the amount due.

−	An advance payment, ~~also known~~ as a down payment, is when part of a contractual sum is paid in advance of the exchange, i.e. before any work has been done or goods supplied. Advance payments are typically recorded as prepaid expenses by the payer and recorded as assets on the balance sheet.	+	An advance payment, sometimes referred to as a down payment, or ex gratis payment, is when part of a contractual sum is paid in advance of the exchange, i.e. before any work has been done or goods supplied. Advance payments are typically recorded as prepaid expenses by the payer and recorded as assets on the balance sheet.

	On a construction project, a contractor may request an advance payment to help them meet significant start up or procurement costs that may have to be incurred before construction begins. For example, where they have had to purchase high-value plant, equipment or materials specifically for the project.		On a construction project, a contractor may request an advance payment to help them meet significant start up or procurement costs that may have to be incurred before construction begins. For example, where they have had to purchase high-value plant, equipment or materials specifically for the project.

Designing Buildings at 16:48, 8 January 2018

2018-01-08T16:48:10Z

← Older revision		Revision as of 16:48, 8 January 2018
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	An advance payment, also known as a down payment, is when part of a contractual sum is paid in advance of the exchange, i.e. before any work has been done or goods supplied. Advance payments are typically recorded as prepaid expenses by the payer and recorded as assets on the balance sheet.		An advance payment, also known as a down payment, is when part of a contractual sum is paid in advance of the exchange, i.e. before any work has been done or goods supplied. Advance payments are typically recorded as prepaid expenses by the payer and recorded as assets on the balance sheet.

−	On a construction project, a contractor may request an advance payment to help them meet significant start up or procurement costs that may have to be incurred before construction begins. For example, where they have had to purchase high-value plant, equipment or materials specifically for the project. In these instances, the client ~~will~~ require an advanced payment bond. This secures the payment against default by the contractor.	+	On a construction project, a contractor may request an advance payment to help them meet significant start up or procurement costs that may have to be incurred before construction begins. For example, where they have had to purchase high-value plant, equipment or materials specifically for the project.
		+
		+	In these instances, the client should require an advanced payment bond. This secures the payment against default by the contractor.

	For more information, see Advance payment bond.		For more information, see Advance payment bond.
		+
		+	It is also sometimes necessary for the client to pay for items even though they remain ‘off-site’, for example, where a contractor has themselves made a large payment for plant or materials that have yet to be delivered to site, or if the client wishes to ‘reserve’ key items in order to protect the programme. However, this does put the client at risk, for example if the contractor or supplier becomes insolvent and the items are then not delivered, even though payment has been made.
		+
		+	Several mechanisms are available to protect the client, however, none of these methods is fool proof. Judgement is necessary to assess the risk to the project, or the potential loss to the client versus the cost of benefit of greater certainty of supply.
		+
		+	For more information see: Off site materials.

	= Find out more =		= Find out more =
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	* Ex gratis payment.		* Ex gratis payment.
	* Fair payment practices for construction.		* Fair payment practices for construction.
−	* ~~Fluctuations in construction contracts~~.	+	* Off site materials.
	* Payment.		* Payment.
	* Payment notice for construction contracts.		* Payment notice for construction contracts.
	* Retention.		* Retention.
		+	* Vesting certificate.

	[[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor: Created page with "Payment is the transfer between parties of some form of value (such as funds, services, assets) in an agreed exchange. This can be for goods, services or to fulfil a legal obliga..."

2018-01-05T12:27:33Z

Created page with "Payment is the transfer between parties of some form of value (such as funds, services, assets) in an agreed exchange. This can be for goods, services or to fulfil a legal obliga..."

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Payment is the transfer between parties of some form of value (such as funds, services, assets) in an agreed exchange. This can be for goods, services or to fulfil a legal obligation such as a debt. The most common form of payment involves money although it can also take the form of stock issues or other benefit, and is typically preceded by a bill or invoice specifying the amount due.

An advance payment, also known as a down payment, is when part of a contractual sum is paid in advance of the exchange, i.e. before any work has been done or goods supplied. Advance payments are typically recorded as prepaid expenses by the payer and recorded as assets on the balance sheet.

On a construction project, a contractor may request an advance payment to help them meet significant start up or procurement costs that may have to be incurred before construction begins. For example, where they have had to purchase high-value plant, equipment or materials specifically for the project. In these instances, the client will require an advanced payment bond. This secures the payment against default by the contractor.

For more information, see Advance payment bond.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Advance payment bond.
* Bonds and guarantees.
* Ex gratis payment.
* Fair payment practices for construction.
* Fluctuations in construction contracts.
* Payment.
* Payment notice for construction contracts.
* Retention.

[[Category:Contracts_/_payment]] [[Category:Procurement]]