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Material costs are generally passed directly to the client for payment, and labor is charged hourly. Typically a contractor will provide the client with an hourly rate for labor and an estimation of how long project completion will take.

To defend yourself when a dispute does happen, you need to provide compelling evidence to your customer's bank showing that their reason for filing the dispute is invalid. You can submit relevant documentation to defend open disputes in your Disputes Dashboard.

We have yet to receive payment from yourselves of [amount owed on invoice] in respect of our invoice [invoice reference number] which was due for payment on [date due]. I would be really grateful if you could let me know when we can expect to receive payment. I have attached a copy of the invoice for your reference.

A polite email reminder is the first step of how to ask for payment professionally. The first step is a call or reminder sent via email or snail mail reminding them of the past due status of invoices. That gives your customers the chance to explain their situation for the overdue invoice.

Contractors or subcontractors can request a progress payment using a payment application, which should be defined in the contract requirements. A payment application is a type of construction document that prime contractors and first-tier subcontractors use to request payment from the hiring party.

For example, a contractor may submit an invoice based on 50% of work being completed, but the owner maintains only 40% was done and pays ingly.

A typical prepayment runs about 20-33% of the job. Net 10, 30 and 60: A net payment means payment is due 10, 30 or 60 days from the date of the invoice. Pay-when-paid: This is a common clause in a contract that means the subs on the job will get paid when the homeowner pays the general contractor.