A payment-approval checklist for confirming the milestone definition, installed work, inspections, correction status, stored materials, approved change orders, payment math, conditional lien waivers, and remaining balance before releasing funds.
6 items to check
The payment request should come from the contracted legal entity, identify the project and billing period, state the exact milestone or schedule-of-values lines, and reconcile previous invoices, payments, credits, and retainage where used.
Payment should correspond to the contract definition of completed work, not merely labor attendance, material ordering, partial activity, or an informal percentage claimed by the contractor.
Work should not be treated as an approved milestone when a required inspection or test is missing, failed, expired, or subject to unresolved correction unless the contract expressly defines another payment treatment.
A progress payment review should identify nonconforming, damaged, incomplete, or unprotected work and apply the contract process for correction, withholding, retainage, or disputed value without approving defective work by silence.
Payment for stored materials should follow the contract and lender rules, with evidence of purchase, identification, ownership, location, protection, insurance, and later installation. Only signed changes should alter the payable contract value.
Before payment, the owner should follow state-specific notice and conditional waiver procedures where applicable, confirm the payment method and recipient, and ensure the remaining unpaid balance is reasonable for all unfinished work and closeout obligations.
Use this checklist each time a contractor requests a progress payment. It does not determine state law or replace lender, architect, engineer, or title-company procedures. Pay only under the signed contract and after verifying the specific milestone and required documents.
A before-signing change-order checklist for the reason, exact added and deleted scope, drawings and product changes, alternatives, itemized price and credits, markup, schedule impact, permits, warranties, and authorization.
A pre-signing contract checklist for legal identity, property, detailed scope, plans and selections, dates, permits, price and payment milestones, change orders, cancellation, dispute terms, warranties, closeout documents, and lien risk.
A final-payment checklist for completed scope and punch list, final inspections and occupancy approvals, manuals and warranties, as-built records, final invoice and credits, state-specific lien waivers, payment evidence, and warranty contacts.
A pre-hire verification checklist for matching the contractor legal identity, license status and classification, disciplinary record, liability insurance, workers compensation, bond, and expiration dates.