MANAGEMENT

Application for Payment Homework 1

10 points

You are helping to prepare the Application and Certificate for Payment for a commercial project. Here is the information from the January 2019 payment application. Note that the retainage is 4% on this project:

Line Description Amount

1 Original Contract Sum $4,320,000.00

2 Net Change by Change Orders $85,000.00

3 Contract sum to date $4,405,000.00

4 Total completed and stored to date $2,319,000.00

5a Retainage $92,760.00

6 Total earned less retainage $2,226,240.00

7 Less previous certificates for payment $1,040,100.00

8 Current payment due $1,186,140.00

9 Balance to finish, including retainage $2,178,260.00

Your PM tells you to calculate the amounts for the February pay application based on the following information:

• You have a new finalized change order (#3) deducting ($8,000.00) to the contract. It is 100% complete.
• You have another new finalized change order (#4) adding $18,000.00 from the contract. It is 30% complete.
• You have another finalized change order (#5) adding $6,000. It has not yet been started.
• You have another change order for $31,000.00 that has not been finalized. It is 90% complete.
• You have completed another $89,600.00 of other work, including fee.

Calculate the amounts and complete the following for the February application:

Line Description Amount

1 Original Contract Sum ______________

2 Net Change by Change Orders ______________

3 Contract sum to date ______________

4 Total completed and stored to date ______________

5a Retainage ______________

6 Total earned less retainage ______________

7 Less previous certificates for payment ______________

8 Current payment due ______________

9 Balance to finish, including retainage ______________