Podcast
Questions and Answers
When will the Employer pay the first instalment?
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?
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?
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 shall there be only one instalment?
What happens if the applicable currencies and proportions are not specified?
What happens if the applicable currencies and proportions are not specified?
What is the requirement for the guarantee related to the advance payment?
What is the requirement for the guarantee related to the advance payment?
How long should the guarantee related to the advance payment be valid and enforceable?
How long should the guarantee related to the advance payment be valid and enforceable?
When is the Employer allowed to withhold payments to the Contractor?
When is the Employer allowed to withhold payments to the Contractor?
What does payment to the Contractor imply, according to the Contractual Payment Terms and Conditions?
What does payment to the Contractor imply, according to the Contractual Payment Terms and Conditions?
When is the Contractor entitled to receive financing charges on unpaid amounts?
When is the Contractor entitled to receive financing charges on unpaid amounts?
When is the first half of the retention money paid to the Contractor?
When is the first half of the retention money paid to the Contractor?
What happens if the relevant percentage for each section is not stated in the Contract regarding the release of the Retention Money?
What happens if the relevant percentage for each section is not stated in the Contract regarding the release of the Retention Money?
What is the Contractor required to submit within a specified timeframe after receiving the Performance Certificate?
What is the Contractor required to submit within a specified timeframe after receiving the Performance Certificate?
What is the Employer obligated to do in case of a dispute arising after discussions and changes to the draft final statement?
What is the Employer obligated to do in case of a dispute arising after discussions and changes to the draft final statement?
What happens if the advance payment has not been repaid 28 days prior to the expiry date specified in the guarantee?
What happens if the advance payment has not been repaid 28 days prior to the expiry date specified in the guarantee?
How is repayment of the advance payment handled?
How is repayment of the advance payment handled?
When does the entire outstanding balance of the advance payment become immediately due and payable by the Contractor to the Employer?
When does the entire outstanding balance of the advance payment become immediately due and payable by the Contractor to the Employer?
What is required to be submitted by the Contractor after the end of the payment period stated in the Contract?
What is required to be submitted by the Contractor after the end of the payment period stated in the Contract?
In the absence of a Schedule of Payments in the Contract, what must the Contractor submit?
In the absence of a Schedule of Payments in the Contract, what must the Contractor submit?
Under what conditions is the Contractor entitled to an interim payment for Plant and Materials not yet on the Site?
Under what conditions is the Contractor entitled to an interim payment for Plant and Materials not yet on the Site?
When must the Employer provide notice to the Contractor of any items in the Statement with which the Employer disagrees?
When must the Employer provide notice to the Contractor of any items in the Statement with which the Employer disagrees?
In accordance with the text, when does the discharge become effective?
In accordance with the text, when does the discharge become effective?
In what currency or currencies shall the Contract Price be paid?
In what currency or currencies shall the Contract Price be paid?
Based on the text, when can the Employer recover the balance of an amount payable by the Contractor in a particular currency?
Based on the text, when can the Employer recover the balance of an amount payable by the Contractor in a particular currency?
What does the Contractor need to submit when submitting the Final Statement?
What does the Contractor need to submit when submitting the Final Statement?
When shall the Employer pay the Contractor the amount which is finally due?
When shall the Employer pay the Contractor the amount which is finally due?
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?
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?
When can the discharge become effective?
When can the discharge become effective?
Based on the text, in what currency shall other payments to the Employer by the Contractor be made?
Based on the text, in what currency shall other payments to the Employer by the Contractor be made?
When can the Employer terminate the Contract if the Contractor fails to carry out any obligation?
When can the Employer terminate the Contract if the Contractor fails to carry out any obligation?
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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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