Assessment When No Application Submitted
If the Contractor does not submit an application for payment before the assessment date, the amount due is the lesser of the amount the PM assesses as due (assessed as though the Contractor had submitted an application) and the amount due at the previous assessment date.
The Contractor must submit timely payment applications. If none is submitted, the PM's assessment is capped at the previous assessment amount, effectively freezing payments.
This creates a strong incentive to submit applications. If the Contractor misses an assessment date, it may receive no additional payment for that period and must catch up in the next assessment.
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