Founding Father and one of the nation’s first financial advisers, Benjamin Franklin, said “Beware of the little expenses. A small leak will sink a great ship.” To remain afloat in the tumultuous waters of today’s economy, one should closely monitor expenses both large and small. This is especially true for modern Property Developers and City Planners. Without proper financial management it would be nearly impossible for a developer’s dream to become reality.
Fiscally responsible planners and developers monitor their expenses as diligently as a doting mother would her child. Developers who contract another company to complete the building portion of their project may find it a bit more difficult to manage cash flow than those who complete the projects themselves. Reviewing invoices from third-party construction companies and vendors may not be enough for a seasoned developer. To ensure his ship stays afloat he may request an ‘Application for Payment’ from the commissioned construction company in lieu of a conventional invoice.
In construction accounting applications for payment, also known as requests for compensation, are often viewed as being highly detailed invoices. These comprehensive documents often include descriptions of labor, materials, and other line items as well as the costs, amounts, and change orders corresponding to each. The actual content of applications for payment will often differ from company to company based on their needs and those of their clients. These forms can be especially useful to cost-conscious developers and contractors undertaking large, multifaceted projects.