Valuation is the assessment of completed work used to determine interim payments throughout a construction project. It ensures that contractors are compensated for the work completed at regular intervals, based on agreed-upon schedules.

How Valuation Affects Interim Payments

Valuation provides a fair assessment of the work completed, allowing contractors to receive payments at key milestones. This process helps manage cash flow and ensures that contractors are paid for progress made, rather than waiting for full project completion.

Best Practices for Valuations

Contractors should ensure that the valuation process is transparent and accurately reflects the work completed. Regular site inspections and thorough documentation of progress can ensure accurate valuations. Contractors should also agree on a clear valuation schedule with clients at the start of the project. Related Terms: Interim Payment, Progress Payment, Payment Application

FAQs

How is valuation used in construction payments?

A: Valuation is used to assess the value of completed work, determining how much a contractor should be paid at each project milestone.

How often is valuation conducted?

A: Valuations are typically conducted monthly or at key project milestones, depending on the terms of the contract.

Valuation Definition

How Valuation Affects Interim Payments

Best Practices for Valuations

FAQs

How is valuation used in construction payments?

How often is valuation conducted?

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