Question
Payment under a contract is made in consideration to
which among the following?Solution
Payment based on Architect’s Certificate – If the contracts are small, full payment is usually made on the completion of the contract. But in case of large contracts, usually a system of progress payments is followed in which part payments of the contract amount are paid from time to time on the basis of the certificates issued by the architects, certifying the value of the work satisfactorily completed. Such payments are not entered in the contract account, rather are credited to the personal account of the contractee.
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