53 Questions
What proportion of the estimated final Contract Price is used to calculate the proportion of the second half of the Retention Money?
Two-fifths (40%)
When should the Contractor submit the Statement at Completion with supporting documents?
Within 84 days after receiving the Taking-Over Certificate for the Works
Under what conditions is the Engineer entitled to withhold certification of the estimated cost of remaining work?
If any work remains to be executed under Clause 11 [Defects Liability]
What documents should the Contractor submit along with the Statement at Completion?
Six copies of the Statement at completion with supporting documents
What should be included in the Statement at Completion submitted by the Contractor?
The value of all work done in accordance with the Contract, any further sums due, and an estimate of other amounts due under the Contract
When is the proportion of the second half of the Retention Money certified and paid?
After the expiry date of the Defects Notification Period for the Section
What adjustments should not be taken into account when calculating proportions related to the estimated contract value?
Adjustments under Sub-Clause 13.7 [Adjustments for Changes in Legislation] and Sub-Clause 13.8 [Adjustments for Changes in Cost]
In what currency should other payments to the Employer by the Contractor be made?
The currency in which the sum was expended by the Employer
Under what conditions is the Employer entitled to terminate the Contract for the Employer’s convenience?
At any time by giving notice of such termination to the Contractor
What action can the Employer take if the Contractor fails to comply with a notice under Sub-Clause 15.1 [Notice to Correct]?
Terminate the Contract immediately
What does the Employer need to do after recovering any losses, damages, and extra costs following termination of the Contract?
Pay any balance to the Contractor
When should the Engineer proceed to agree or determine the value of the Works, Goods, and Contractor’s Documents after termination of the Contract?
As soon as practicable after a notice of termination has taken effect
What should the Contractor use his best efforts to comply with immediately after termination of the Contract?
Any reasonable instructions included in the notice
What may the Employer do with the Contractor’s Equipment and Temporary Works after termination of the Contract?
Release them to the Contractor at or near the Site
If the Engineer fails to certify in accordance with Sub-Clause 14.6, the Contractor may suspend work after giving not less than how many days' notice to the Employer?
21 days
Under what conditions is the Contractor entitled to terminate the Contract?
If the Contractor does not receive the reasonable evidence within 42 days after giving notice under Sub-Clause 16.1
If the Contractor suffers delay and/or incurs Cost as a result of suspending work, the Contractor shall be entitled to:
Both a and b
If the Employer becomes bankrupt or insolvent, what is the Contractor entitled to do?
Both a and b
What happens if the Contractor subsequently receives the Payment Certificate, evidence, or payment before giving a notice of termination?
The Contractor shall resume normal working as soon as is reasonably practicable
What action can the Contractor take if the Employer fails to comply with Sub-Clause 1.6 or Sub-Clause 1.7?
Terminate the Contract
Under what circumstances can the Contractor suspend work?
If the Contractor does not receive the reasonable evidence within 56 days after giving notice under Sub-Clause 16.1
If the Employer substantially fails to perform his obligations under the Contract, what is the Contractor entitled to do?
All of the above
What should the Engineer do after receiving a notice of termination from the Contractor?
Proceed to agree or determine the matters related to delay and Cost
What is the deadline for the Contractor to submit a draft final statement with supporting documents?
Within 56 days after receiving the Performance Certificate
When does the Engineer issue the Final Payment Certificate?
Within 28 days after receiving the Final Statement and written discharge
What does the Contractor need to submit when submitting the Final Statement?
A written discharge confirming full and final settlement of all moneys due
How long does the Contractor have to apply for a Final Payment Certificate if not already done so?
28 days
In what currency/currencies should the Contract Price be paid?
As named in the Appendix to Tender
What happens if the Contractor fails to submit an application for a Final Payment Certificate?
The Engineer shall issue the Final Payment Certificate for such amount as he fairly determines to be due
Under what circumstances shall the Employer not be liable to the Contractor for any matter or thing under or in connection with the Contract?
If the matter or thing arises after the issue of the Taking-Over Certificate for the Works
If the contractor fails to make a payment due to the employer, what action may the employer take?
Sell the contractor’s equipment and temporary works to recover the payment
Under what conditions is the employer entitled to terminate the contract for the employer’s convenience?
At any time by giving notice of such termination to the contractor
What does the employer need to do after recovering any losses, damages, and extra costs following termination of the contract?
Withhold further payments to the contractor
Under what circumstances can the contractor suspend work?
If the employer fails to comply with a notice under Sub-Clause 15.1 [Notice to Correct]
What is the deadline for the contractor to submit a draft final statement with supporting documents?
42 days after receiving the taking-over certificate
When should the engineer proceed to agree or determine the value of the works, goods, and contractor’s documents after termination of the contract?
Within 28 days of receiving the notice of termination
In what currency/currencies should the contract price be paid?
In the currency in which the sum was expended by the employer
What is the deadline for the Contractor to submit a draft final statement with supporting documents?
56 days after receiving the Performance Certificate
When does the Engineer issue the Final Payment Certificate?
28 days after receiving the Final Statement and discharge
What happens if the Contractor fails to apply for a Final Payment Certificate?
The Engineer determines the amount due and issues the certificate
What is the currency in which the Contract Price is paid?
As specified in the Appendix to Tender
When is the Final Statement submitted?
After the Final Payment Certificate is issued
What must the Contractor submit with the Final Statement?
Supporting documents
What is the Engineer's responsibility if there are disagreements or unverified parts in the draft final statement?
To issue an Interim Payment Certificate
If the Engineer fails to certify in accordance with Sub-Clause 14.6, the Contractor may suspend work after giving not less than how many days' notice to the Employer?
21 days
If the Contractor suffers delay and/or incurs Cost as a result of suspending work, the Contractor shall be entitled to:
Payment of any such Cost plus reasonable profit
Under what circumstances shall the Employer not be liable to the Contractor for any matter or thing under or in connection with the Contract?
If the Employer becomes bankrupt
Under what conditions is the Contractor entitled to terminate the Contract?
If the Contractor does not receive the reasonable evidence within 42 days after giving notice under Sub-Clause 16.1
What happens if the Contractor subsequently receives the Payment Certificate, evidence, or payment before giving a notice of termination?
The Contractor shall resume normal working
What may the Employer do with the Contractor’s Equipment and Temporary Works after termination of the Contract?
Keep them without any compensation to the Contractor
In what currency should the Contract Price be paid?
Any mutually agreed currency
When should the Engineer proceed to agree or determine the value of the Works, Goods, and Contractor’s Documents after termination of the Contract?
Within 56 days
What should the Contractor use his best efforts to comply with immediately after termination of the Contract?
Secure the site and protect the Works
Study Notes
FIDIC Contract Final Payment and Discharge Summary
- The contract requires the Engineer to certify estimated amounts separately in the Statement at completion.
- The Contractor must submit a draft final statement with supporting documents within 56 days of receiving the Performance Certificate.
- Disagreements or unverified parts of the draft final statement require the Contractor to provide further information and make agreed changes.
- If a dispute arises, an Interim Payment Certificate for agreed parts of the draft final statement is issued, and a Final Statement is submitted after resolution.
- The Contractor must submit a written discharge with the Final Statement, confirming full and final settlement of all moneys due.
- Within 28 days of receiving the Final Statement and discharge, the Engineer issues the Final Payment Certificate stating the amount finally due.
- If the Contractor fails to apply for a Final Payment Certificate, the Engineer determines the amount due and issues the certificate.
- The Employer is not liable for matters or things under the Contract, except for amounts included in the Final Statement and Statement at completion.
- The Contract Price is paid in the currency or currencies named in the Appendix to Tender, with specific provisions for payments in different currencies.
- Payment and deductions under various clauses are made in applicable currencies and proportions as specified in the Appendix to Tender.
- Damages specified in the Appendix to Tender are paid in the currencies and proportions specified in the Appendix to Tender.
- The text includes the contact details of Mustafa USALAN, suggesting that the document may be an excerpt from a larger document or communication.
Test your knowledge about the procedures and requirements for final payment and discharge in FIDIC contracts. This quiz covers the certification process, dispute resolution, submission requirements, and currency provisions for payments.
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