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AIA Document A101–2007. Copyright © 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The
American Institute of Architects. All rights reserved. Kentucky Department of Education Version of AIA Document A101–2007. Copyright © 2014
by The American Institute of Architects. All rights reserved. WARNING: This AIA
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5
ARTICLE 5 PAYMENTS
§ 5.1 PROGRESS PAYMENTS
§ 5.1.1 Based upon Applications for Payment submitted to the Architect by the Contractor and Certificates for Payment
issued by the Architect, the Owner shall make progress payments on account of the Contract Sum to the Contractor as
provided below and elsewhere in the Contract Documents.
§ 5.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the
month, or as follows:
§ 5.1.3 Provided that an Application for Payment is received by the Architect not later than the day of
a month, the Owner shall make payment of the certified amount to the Contractor not later than the
day of the month. If an Application for Payment is received by the Architect after the application date fixed
above, payment shall be made by the Owner not later than ( ) days after the
Architect receives the Application for Payment.
State law (KRS 371.405) requires the Owner to pay undisputed Applications for Payment within forty-five (45)
business days following receipt of the invoices. If the Owner fails to pay the Contractor within forty-five (45) business
days following receipt of an undisputed Application for Payment, state law requires the Owner shall pay interest to the
Contractor beginning on the forty-sixth business day after receipt of the Application for Payment, computed at the rate
required by state law.
§ 5.1.4 Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor
in accordance with the Contract Documents. The schedule of values shall allocate the entire Contract Sum among the
various portions of the Work. The schedule of values shall be prepared in such form and supported by such data to
substantiate its accuracy as the Architect may require. This schedule, unless objected to by the Architect, shall be used
as a basis for reviewing the Contractor’s Applications for Payment.
§ 5.1.5 Applications for Payment shall show the percentage of completion of each portion of the Work as of the end of
the period covered by the Application for Payment.
§ 5.1.6 Subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed
as follows:
.1 Take that portion of the Contract Sum properly allocable to completed Work as determined by
multiplying the percentage completion of each portion of the Work by the share of the Contract Sum
allocated to that portion of the Work in the schedule of values, less retainage of
percent ( %). Pending final determination of cost to the
Owner of changes in the Work, amounts not in dispute shall be included as provided in Section 7.3.9 of
AIA Document A201™–2007, General Conditions of the Contract for Construction — KDE Version;
.2 Add that portion of the Contract Sum properly allocable to materials and equipment delivered and
suitably stored at the site for subsequent incorporation in the completed construction (or, if approved in
advance by the Owner, suitably stored off the site at a location agreed upon in writing), less retainage of
percent ( %);
.3 Subtract the aggregate of previous payments made by the Owner; and
.4 Subtract amounts, if any, for which the Architect has withheld or nullified a Certificate for Payment as
provided in Section 9.5 of AIA Document A201–2007 — KDE Version.
§ 5.1.7 The progress payment amount determined in accordance with Section 5.1.6 shall be further modified under the
following circumstances:
.1 Add, upon Substantial Completion of the Work, a sum sufficient to increase the total payments to the full
amount of the Contract Sum, less such amounts as the Architect shall determine for incomplete Work,
retainage applicable to such work and unsettled claims; and
(Section 9.8.5 of AIA Document A201–2007 — KDE Version requires release of applicable retainage
upon Substantial Completion of Work with consent of surety, if any.)