S 99 - 6

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Questions and Answers

When will the Employer pay the first instalment?

After signing the Contract Agreement

After the completion of the project

After receiving a Statement, Performance Security, and a guarantee equal to the advance payment (correct)

After receiving the advance payment

What happens if the Contractor fails to provide the required guarantee?

The Sub-Clause regarding advance payment does not apply (correct)

The Employer pays the advance payment regardless

The Contractor is fined

The advance payment is forfeited

How is the amortisation rate for repayments calculated?

By multiplying the advance payment by the Contract Price

By dividing the total amount of the advance payment by the Contract Price stated in the Contract Agreement less Provisional Sums (correct)

By subtracting the advance payment from the Contract Price

By dividing the advance payment by the number of instalments

When shall there be only one instalment?

When the number and timing of instalments are specified Signup and view all the answers

What happens if the applicable currencies and proportions are not specified?

They shall be those in which the Contract Price is payable Signup and view all the answers

What is the requirement for the guarantee related to the advance payment?

It should be issued by an approved entity and from an approved country or jurisdiction Signup and view all the answers

How long should the guarantee related to the advance payment be valid and enforceable?

Until the advance payment has been repaid Signup and view all the answers

When is the Employer allowed to withhold payments to the Contractor?

In cases of non-compliance with the Contract or failure to perform obligations Signup and view all the answers

What does payment to the Contractor imply, according to the Contractual Payment Terms and Conditions?

It does not imply the Employer's acceptance, approval, consent, or satisfaction Signup and view all the answers

When is the Contractor entitled to receive financing charges on unpaid amounts?

If the Contractor does not receive payment on time Signup and view all the answers

When is the first half of the retention money paid to the Contractor?

Upon issuing the Taking-Over Certificate and passing specified tests Signup and view all the answers

What happens if the relevant percentage for each section is not stated in the Contract regarding the release of the Retention Money?

No percentage is released Signup and view all the answers

What is the Contractor required to submit within a specified timeframe after receiving the Performance Certificate?

A draft final statement showing the value of work done and any further sums due Signup and view all the answers

What is the Employer obligated to do in case of a dispute arising after discussions and changes to the draft final statement?

Pay the agreed parts in accordance with specified clauses Signup and view all the answers

What happens if the advance payment has not been repaid 28 days prior to the expiry date specified in the guarantee?

The Contractor must extend the validity of the guarantee until the advance payment is repaid Signup and view all the answers

How is repayment of the advance payment handled?

Through proportional deductions in interim payments, based on the amortization rate stated in the Particular Conditions Signup and view all the answers

When does the entire outstanding balance of the advance payment become immediately due and payable by the Contractor to the Employer?

Before the Taking-Over Certificate for the Works or prior to termination under specific clauses Signup and view all the answers

What is required to be submitted by the Contractor after the end of the payment period stated in the Contract?

A Statement detailing the amounts entitled, along with supporting documents, including progress reports Signup and view all the answers

In the absence of a Schedule of Payments in the Contract, what must the Contractor submit?

Non-binding estimates of the expected payments during each quarterly period Signup and view all the answers

Under what conditions is the Contractor entitled to an interim payment for Plant and Materials not yet on the Site?

If they are in the Country and marked as the Employer's property, or the Contractor has provided evidence of insurance and a bank guarantee approved by the Employer Signup and view all the answers

When must the Employer provide notice to the Contractor of any items in the Statement with which the Employer disagrees?

Within 28 days of receiving the Statement and supporting documents Signup and view all the answers

In accordance with the text, when does the discharge become effective?

When the Contractor has received the Performance Security and the outstanding balance of the total Signup and view all the answers

In what currency or currencies shall the Contract Price be paid?

As named in the Contract Agreement Signup and view all the answers

Based on the text, when can the Employer recover the balance of an amount payable by the Contractor in a particular currency?

When the sum payable by the Employer to the Contractor in that currency exceeds the amount payable by the Contractor to the Employer in that currency Signup and view all the answers

What does the Contractor need to submit when submitting the Final Statement?

A written discharge confirming full and final settlement of all moneys due Signup and view all the answers

When shall the Employer pay the Contractor the amount which is finally due?

In accordance with the timing of payments specified in the Contract Signup and view all the answers

Based on the text, under what circumstances shall the Employer not be liable to the Contractor for any matter or thing under or in connection with the Contract or execution of the Works?

If the matter or thing is not included in the Final Statement and the Statement at completion Signup and view all the answers

When can the discharge become effective?

When the Contractor has received the Performance Security and the outstanding balance of the total Signup and view all the answers

Based on the text, in what currency shall other payments to the Employer by the Contractor be made?

In the currency in which the sum was expended by the Employer, or as agreed by both Parties Signup and view all the answers

When can the Employer terminate the Contract if the Contractor fails to carry out any obligation?

By notice requiring the Contractor to make good the failure and to remedy it within a specified reasonable time Signup and view all the answers

Study Notes

Contractor's Interim Payment Terms and Conditions

If the advance payment has not been repaid 28 days prior to the expiry date specified in the guarantee, the Contractor must extend the validity of the guarantee until the advance payment is repaid.
Repayment of the advance payment will occur through proportional deductions in interim payments, based on the amortization rate stated in the Particular Conditions.
If the advance payment has not been repaid before the Taking-Over Certificate for the Works or prior to termination under specific clauses, the entire outstanding balance becomes immediately due and payable by the Contractor to the Employer.
The Contractor is required to submit a Statement to the Employer after the end of the payment period stated in the Contract, detailing the amounts entitled, along with supporting documents, including progress reports.
The Statement must include the estimated contract value of the Works executed, any changes in legislation or cost, retention amounts, advance payment deductions, and any other additions or deductions due under the Contract.
If the Contract includes a Schedule of Payments, the instalments quoted in the schedule will be considered as the estimated contract values for the purposes of interim payments.
If the Contract does not include a Schedule of Payments, the Contractor must submit non-binding estimates of the expected payments during each quarterly period.
The Contractor is not entitled to an interim payment for Plant and Materials not yet on the Site unless they are in the Country and marked as the Employer's property, or the Contractor has provided evidence of insurance and a bank guarantee approved by the Employer.
No payment will be made until the Employer has received and approved the Performance Security.
The Employer must provide notice to the Contractor of any items in the Statement with which the Employer disagrees, along with supporting particulars, within 28 days of receiving the Statement and supporting documents.

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Description

Test your knowledge of the terms and conditions regarding interim payments for contractors. This quiz covers topics such as repayment of advance payments, submission of statements to the employer, entitlement to interim payments, and performance security requirements.