Quiz On Progress Payment

Explanation
Progress payments are indeed payments made to contractors based on the cost they have incurred as work progresses under a contract. These payments are typically made at predetermined stages or milestones throughout the project to ensure that the contractor has the necessary funds to continue the work. Therefore, the statement "Progress Payments are payments made based on the cost incurred by the contractors as work progresses under the contract" is true.

Explanation
To ensure that the work is done as claimed in the Progress Payment, a form is written to the owner with the architect's certification. This certification serves as a confirmation from the architect that the work has been completed according to the agreed-upon specifications and standards. It provides assurance to the owner that the payment being made is justified and that the work has been properly inspected and approved by a professional. The architect's certification adds credibility and accountability to the progress payment process, giving the owner confidence that the work has been done as claimed.

Explanation
In the construction industry, payment is of utmost importance due to several reasons. Firstly, construction projects have longer durations compared to other industries, which means that contractors and suppliers have to wait for a longer period to receive their payments. Secondly, the size of each construction project is usually large, resulting in significant payment sums. Lastly, payment terms in the construction industry often involve credit instead of immediate payment upon delivery, which can have financial implications for contractors and suppliers.

Explanation
The correct answer is "Construction Industry Payment and Adjudication Acts." CIPA stands for Construction Industry Payment and Adjudication Acts, which refers to a set of laws in Malaysia that regulate payment disputes and adjudication processes in the construction industry. These acts ensure that contractors and subcontractors are paid promptly and fairly for their work, and provide a mechanism for resolving payment disputes through adjudication if necessary.

Explanation
A Unit Price Payment Schedule is one of the types of payment schedules established for construction contracts. In this type of schedule, the payment is based on the unit price of each item or activity involved in the construction project. The contractor is paid according to the quantity of work completed, multiplied by the agreed-upon unit price. This type of payment schedule provides transparency and allows for more accurate cost control as payments are directly linked to the actual work done.