Request for Construction Advance Clause Samples
The Request for Construction Advance clause outlines the process by which a contractor or builder can formally request an advance payment from the project owner to cover upcoming construction costs. Typically, this clause specifies the documentation required, such as invoices or progress reports, and may set conditions like project milestones or percentage completion before an advance is granted. Its core function is to ensure that contractors have sufficient funds to maintain project momentum and cover necessary expenses, thereby reducing the risk of work stoppages due to cash flow issues.
Request for Construction Advance. Not less than fifteen (15) business days before the date on which the Contracting Party desires a Construction Advance, but not more frequently than monthly, the Contracting Party shall submit to the Board a Construction Advance Request, which shall be accompanied by the following:
6.1.1. Application and Certificate for Payment dated as of the date of the Request for Advance;
6.1.2. Billing statements, vouchers and invoices, in form and content satisfactory to the Board, with regard to items that are the subject of the Construction Advance Request;
6.1.3. If the Construction Advance is for the purpose of reimbursing the Contracting Party for Costs of Construction previously paid by the Contracting Party, evidence satisfactory to the Board of such prior payment;
6.1.4. If requested by the Board, appropriate waivers of lien rights, in form and content satisfactory to the Board and its legal counsel, executed and acknowledged by all Contractors, sub-contractors, laborers and materialmen who have furnished labor or materials relating to the Improvements;
Request for Construction Advance. That Lender receive an executed Request for Construction Advance from CGI in the form of Exhibit "D" attached hereto (the "Request for Con struction Advance"), together with all items called for therein, not later than five (5) days prior to the date the Advance is desired, subject to Section 4.1(b) hereof.
Request for Construction Advance. Except as otherwise provided in this Agreement, Lender shall have received a Request for Construction Advance duly executed on behalf of Borrower with such supporting documentation as Lender may require. Each Request for Construction Advance shall:
(a) specify the principal amount of the Construction Advance requested and the specific category and amount of costs of the Work to be paid with the proceeds thereof;
(b) be submitted with a completed standard AIA requisition form or equivalent that describes the total cost budget in detail, by line item categories on the construction budget, with each line item including detail of the total amount completed and stored to date, the total amount of prior Construction Advances, the amount of the current requested Construction Advance and the balance to complete the remainder of the Work on Phase 2 of the Project;
(c) be signed by an officer of Borrower;
(d) contain a certification by Borrower and/or the Inspector, to the effect that the progress of construction is in accordance with the applicable Specifications and is such that the applicable Work will be completed by the Phase 2 Completion Date; and
(e) be accompanied by an internal cost report (including check numbers for bills paid) and if requested by Lender then such further back-up (including copies of bills and paid invoices), as reasonably requested or other documentation satisfactory to Lender that provide evidence for the costs requested to be advanced and evidence, as necessary, that Construction Advances made pursuant to prior Requests for Construction Advance for costs that were billed and not yet paid have been expended as requisitioned.
(f) state that the representations, warranties and covenants of Borrower contained in this Agreement and any closing or funding related certifications are true and correct as of the date of the request and, after giving effect to the making of such requested Advance, will be true and correct as of the date on which the requested Advance is to be made;
(g) state that no Default or Event of Default exists as of the date of the request and, after giving effect to the making of such requested Advance, no Default or Event of Default would exist as of the date on which the requested Advance is to be paid;