Payment control
Pay application review and change-order control
You pay for a project through monthly pay applications and change orders, both prepared by the contractor. We check each one against the work on site, the contract and its price breakdown (the schedule of values), collect lien waivers and send you a recommendation before you pay.
The risk
How overbilling and loose change orders add up
Say the roofing line is $300,000 and the pay app claims 80% when the underlayment is down and no tile is set. You are asked for $240,000 against work worth about $120,000. Approve it and you have paid $120,000 ahead of the work.
Under Florida’s Construction Lien Law, subcontractors who serve a Notice to Owner can lien your property if the contractor does not pay them. Without lien waivers you can pay twice. Change orders priced as a lump sum with no backup add to the problem. We check every pay application on site, collect lien waivers with each payment and require backup for every change order.
What’s included
What we do for you
Results
What you get
Every payment matches work checked on site.
Lien waivers collected from the GC and every subcontractor and supplier on notice.
Every change priced, justified and negotiated before you approve it.
How it runs
The process
- Set the baselineSchedule of values, retainage, Notices to Owner and change procedures set up.
- Draft reviewWe check the draft pay app against the site.
- Verify and adjustPercentages corrected, materials and waivers checked.
- Recommend paymentA memo with the amount and what changed.
- Manage changesChange orders reviewed, negotiated and logged.
Deliverables
What you receive
- 01Monthly pay-app review memo with the recommended payment
- 02Site photos tied to schedule-of-values lines
- 03Lien waiver and Notice to Owner tracker
- 04Change-order log with price, time impact and our recommendation
- 05Contingency and allowance reconciliation
- 06Monthly cost report and forecast to complete
- 07Final payment checklist with final releases and the contractor’s final payment affidavit
Examples
Where this work has been done
805 Washington
A nine-story condominium building in Brooklyn. Osher was lead PM for the developer: trade contracts, payments, facade, MEP and turnover.
Commercial Medical Center
A new medical building between occupied neighbors: shoring, cellar, foundations and steel frame. Osher was lead PM for the GC.
What is a pay application?
The contractor’s monthly invoice, listing each line, percent complete, retainage and amount due. It should be checked against the site before payment.
What is the difference between conditional and unconditional lien waivers?
A conditional waiver takes effect once the payment clears. An unconditional waiver releases rights outright. Usually you collect a conditional one now and an unconditional one for the last payment.
What is a Notice to Owner in Florida?
A notice from a subcontractor or supplier to keep its lien rights. Confirm that party has been paid, through lien waivers, before you pay the contractor.
How do you evaluate a change order?
We confirm it is a real change, check quantities, pricing and markup against backup, look for credits and confirm the schedule impact. Then we negotiate.
What is front-loading?
Overvaluing early work in the schedule of values so the contractor bills more sooner. We check for it at setup and in every pay app.
Start a project
Have your pay apps checked
Call (570) 339-7793 or book a consultation. Send us your latest pay app and we will show you what we would look for.
- A 30-minute call with Osher about your project
- An honest opinion, even if you decide not to hire us
- A written proposal: flat monthly retainer or a percentage of construction value