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A progress billing includes $3,700 for materials stored in the contractor's warehouse, but the contract allows billing only for work performed or materials delivered to the project. What is the best response?

Correct Answer

C) Reject or revise that billing line until it matches the contract payment terms.

Progress billing should follow the written payment terms; a charge outside the allowed delivery or work-value condition should be rejected or revised.

Answer Options
A
Approve the charge because the contractor bought the materials.
B
Hide the materials charge inside the labor line.
C
Reject or revise that billing line until it matches the contract payment terms.
D
Collect the amount as a separate cash deposit outside the contract, even though the written payment schedule says otherwise.

Why This Is the Correct Answer

Progress billing should follow the written payment terms; a charge outside the allowed delivery or work-value condition should be rejected or revised.

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