Price And Payment Procedures (Design/Build)


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8.5" x 11"
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01 20 00-DB
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Price And Payment Procedures (Design/Build)

Use this 3 part SimpleSpecs™ master specification to specify procedures for allowances, unit prices, alternates, and substitution procedures.


  • Cash allowances are included when a specific product has not been chosen at the time of bidding.  For example carpet or wall covering. The amount of the allowance is included in the Contract Sum, and the Contract Sum is adjusted by Change Order once a product is selected.
  • A contingency allowance is included when there may be a change in the Work due to unforeseen conditions and when the design for some portion of the Work has not been completed.


Alternate Bids provide a stipulated sum that will be added to or deducted from the Base Bid amount if specific portions of the Work are modified.


Substitution Considerations

  • Who will receive and consider substitution requests? Will it be the Owner, a Project Manager, or the Design/Builder?
  • What is the deadline for submittal of Substitution requests? 10 to 14 days prior to receipt of bids, or within 30, 45 or 60 days after award of contract?
  • What is the notification process for approved substitutions? By Addenda, Change Order or Supplemental
  • Is there a formal substitution request form?

An Application for Payment is the Subcontractor’s request to be paid a portion of the Contract Sum based on their percent of completion to date.

Some Owners will require additional documentation along with each Application for Payment, such as a release of liens from the subcontractors and suppliers.

Related SimpleSpecs specification templates:

01 20 00 – Price and Payment Procedures

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