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Questions and Answers
What do 'Ln', 'En', 'Mn' represent in the context of cost indices?
What do 'Ln', 'En', 'Mn' represent in the context of cost indices?
When should the cost indices or reference prices stated in the table of adjustment data be used?
When should the cost indices or reference prices stated in the table of adjustment data be used?
What should be done if the source of the cost indices is in doubt?
What should be done if the source of the cost indices is in doubt?
What do 'Lo', 'Eo', 'Mo' represent in the context of cost indices?
What do 'Lo', 'Eo', 'Mo' represent in the context of cost indices?
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What is the purpose of referring to the values of the indices at stated dates?
What is the purpose of referring to the values of the indices at stated dates?
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What does the term 'Uncontrolled Copy' imply in the context of the document?
What does the term 'Uncontrolled Copy' imply in the context of the document?
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What does the term 'Licensed copy' indicate about the document?
What does the term 'Licensed copy' indicate about the document?
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What is the purpose of Sub-Clause 14.5?
What is the purpose of Sub-Clause 14.5?
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Under what conditions will the Engineer determine and certify each addition of Plant and Materials?
Under what conditions will the Engineer determine and certify each addition of Plant and Materials?
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When will the Payment Certificate include the applicable reduction for the relevant Plant and Materials?
When will the Payment Certificate include the applicable reduction for the relevant Plant and Materials?
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What is the equivalent amount of the Engineer’s determination of the cost of the Plant and Materials for the additional amount to be certified?
What is the equivalent amount of the Engineer’s determination of the cost of the Plant and Materials for the additional amount to be certified?
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When should the Contractor submit non-binding estimates of the payments which he expects to become due during each quarterly period?
When should the Contractor submit non-binding estimates of the payments which he expects to become due during each quarterly period?
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Under what circumstances will the Engineer proceed to agree or determine revised instalments for the Contract Price?
Under what circumstances will the Engineer proceed to agree or determine revised instalments for the Contract Price?
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What is the purpose of Sub-Clause 14.4?
What is the purpose of Sub-Clause 14.4?
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What is the maximum period within which the Engineer must issue an Interim Payment Certificate after receiving a Statement and supporting documents?
What is the maximum period within which the Engineer must issue an Interim Payment Certificate after receiving a Statement and supporting documents?
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Under what conditions can an Interim Payment Certificate be withheld?
Under what conditions can an Interim Payment Certificate be withheld?
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When should the first instalment of the advance payment be made by the Employer?
When should the first instalment of the advance payment be made by the Employer?
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What financing charges are applicable if the Contractor does not receive payment in accordance with Sub-Clause 14.7?
What financing charges are applicable if the Contractor does not receive payment in accordance with Sub-Clause 14.7?
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When can the first half of the Retention Money be certified by the Engineer for payment to the Contractor?
When can the first half of the Retention Money be certified by the Engineer for payment to the Contractor?
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What proportion of the Retention Money shall be certified and paid if a Taking-Over Certificate is issued for a Section or part of the Works?
What proportion of the Retention Money shall be certified and paid if a Taking-Over Certificate is issued for a Section or part of the Works?
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What period triggers the calculation of financing charges if the Contractor does not receive payment?
What period triggers the calculation of financing charges if the Contractor does not receive payment?
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What does a Payment Certificate indicate?
What does a Payment Certificate indicate?
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What is the maximum period within which the Employer must pay the amount certified in the Final Payment Certificate?
What is the maximum period within which the Employer must pay the amount certified in the Final Payment Certificate?
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What is the method for converting the 'currency of index' into the relevant currency of payment?
What is the method for converting the 'currency of index' into the relevant currency of payment?
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When is the provisional index for the issue of Interim Payment Certificates determined?
When is the provisional index for the issue of Interim Payment Certificates determined?
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Under what circumstances will the adjustment of prices be made using each index or price applicable 49 days prior to the expiry of the Time for Completion of the Works?
Under what circumstances will the adjustment of prices be made using each index or price applicable 49 days prior to the expiry of the Time for Completion of the Works?
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When does the Contractor submit a proposed breakdown of each lump sum price in the Schedules to the Engineer?
When does the Contractor submit a proposed breakdown of each lump sum price in the Schedules to the Engineer?
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When does the Engineer issue an Interim Payment Certificate for the first instalment of the advance payment?
When does the Engineer issue an Interim Payment Certificate for the first instalment of the advance payment?
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When do deductions commence in the Payment Certificate for the advance payment?
When do deductions commence in the Payment Certificate for the advance payment?
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When does the whole balance outstanding for the advance payment become due and payable by the Contractor to the Employer?
When does the whole balance outstanding for the advance payment become due and payable by the Contractor to the Employer?
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What is the maximum period within which the Employer must pay the amount certified in the Final Payment Certificate?
What is the maximum period within which the Employer must pay the amount certified in the Final Payment Certificate?
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When can the first half of the Retention Money be certified by the Engineer for payment to the Contractor?
When can the first half of the Retention Money be certified by the Engineer for payment to the Contractor?
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What financing charges are applicable if the Contractor does not receive payment in accordance with Sub-Clause 14.7?
What financing charges are applicable if the Contractor does not receive payment in accordance with Sub-Clause 14.7?
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What proportion of the Retention Money shall be certified and paid if a Taking-Over Certificate is issued for a Section or part of the Works?
What proportion of the Retention Money shall be certified and paid if a Taking-Over Certificate is issued for a Section or part of the Works?
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What does a Payment Certificate indicate?
What does a Payment Certificate indicate?
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What is the method for converting the 'currency of index' into the relevant currency of payment?
What is the method for converting the 'currency of index' into the relevant currency of payment?
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When does the Contractor submit a proposed breakdown of each lump sum price in the Schedules to the Engineer?
When does the Contractor submit a proposed breakdown of each lump sum price in the Schedules to the Engineer?
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What is the equivalent amount of the Engineer’s determination of the cost of the Plant and Materials for the additional amount to be certified?
What is the equivalent amount of the Engineer’s determination of the cost of the Plant and Materials for the additional amount to be certified?
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What should be done if the source of the cost indices is in doubt?
What should be done if the source of the cost indices is in doubt?
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What is the method for converting the 'currency of index' into the relevant currency of payment?
What is the method for converting the 'currency of index' into the relevant currency of payment?
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When is the provisional index for the issue of Interim Payment Certificates determined?
When is the provisional index for the issue of Interim Payment Certificates determined?
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Under what circumstances will the adjustment of prices be made using each index or price applicable 49 days prior to the expiry of the Time for Completion of the Works?
Under what circumstances will the adjustment of prices be made using each index or price applicable 49 days prior to the expiry of the Time for Completion of the Works?
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When does the Contractor submit a proposed breakdown of each lump sum price in the Schedules to the Engineer?
When does the Contractor submit a proposed breakdown of each lump sum price in the Schedules to the Engineer?
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When does the Engineer issue an Interim Payment Certificate for the first instalment of the advance payment?
When does the Engineer issue an Interim Payment Certificate for the first instalment of the advance payment?
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When do deductions commence in the Payment Certificate for the advance payment?
When do deductions commence in the Payment Certificate for the advance payment?
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When does the whole balance outstanding for the advance payment become due and payable by the Contractor to the Employer?
When does the whole balance outstanding for the advance payment become due and payable by the Contractor to the Employer?
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Which statement accurately describes the conditions under which the Engineer will determine and certify each addition of Plant and Materials?
Which statement accurately describes the conditions under which the Engineer will determine and certify each addition of Plant and Materials?
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Under what circumstances will the adjustment of prices be made using each index or price applicable 49 days prior to the expiry of the Time for Completion of the Works?
Under what circumstances will the adjustment of prices be made using each index or price applicable 49 days prior to the expiry of the Time for Completion of the Works?
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When can the first half of the Retention Money be certified by the Engineer for payment to the Contractor?
When can the first half of the Retention Money be certified by the Engineer for payment to the Contractor?
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What is the purpose of Sub-Clause 14.5?
What is the purpose of Sub-Clause 14.5?
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What does the term 'Uncontrolled Copy' imply in the context of the document?
What does the term 'Uncontrolled Copy' imply in the context of the document?
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What is the equivalent amount of the Engineer’s determination of the cost of the Plant and Materials for the additional amount to be certified?
What is the equivalent amount of the Engineer’s determination of the cost of the Plant and Materials for the additional amount to be certified?
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When should the Contractor submit non-binding estimates of the payments which he expects to become due during each quarterly period?
When should the Contractor submit non-binding estimates of the payments which he expects to become due during each quarterly period?
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What does the Schedule of Payments in the Contract specify?
What does the Schedule of Payments in the Contract specify?
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When can the Engineer certify the addition of Plant and Materials?
When can the Engineer certify the addition of Plant and Materials?
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What should be done if the source of the cost indices is in doubt?
What should be done if the source of the cost indices is in doubt?
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When does the Payment Certificate include the applicable reduction for the relevant Plant and Materials?
When does the Payment Certificate include the applicable reduction for the relevant Plant and Materials?
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What is the equivalent amount certified for Plant and Materials?
What is the equivalent amount certified for Plant and Materials?
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What is the purpose of Sub-Clause 14.5?
What is the purpose of Sub-Clause 14.5?
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What does the Statement for Interim Payment Certificates include?
What does the Statement for Interim Payment Certificates include?
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Study Notes
Interim Payment Certificates and Schedule of Payments in Construction Contracts
- The Statement for Interim Payment Certificates in construction contracts includes several items expressed in the currencies of the Contract Price.
- The items include estimated contract value of Works executed, deductions for retention, changes in legislation and cost, advance payment, and other additions or deductions due under the Contract.
- The Schedule of Payments in the Contract specifies the estimated contract values for interim payments and may require the submission of non-binding estimates at quarterly intervals if not defined.
- Sub-Clause 14.5 addresses Plant and Materials intended for the Works, where Interim Payment Certificates should include amounts for such items sent to the site and reductions when their contract value is included in the Permanent Works.
- The Engineer certifies the addition of Plant and Materials if the Contractor maintains satisfactory records, submits a statement of the cost, and meets conditions such as shipping or delivery to the site, supported by evidence.
- Plant and Materials listed in the Appendix to Tender for payment when shipped should be en route to the site, described in a clean shipped bill of lading, and protected against loss, damage, or deterioration.
- For Plant and Materials listed in the Appendix for payment when delivered to the site, they should be properly stored on the site, protected, and appear to be in accordance with the Contract.
- The additional amount certified for Plant and Materials is equivalent to eighty percent of the Engineer’s determination of their cost, considering relevant documents and the contract value.
- This additional amount for Plant and Materials should be in the same currencies in which payment will become due when their contract value is included in the Interim Payment Certificates.
- The Payment Certificate at that time should include the applicable reduction equivalent to the additional amount for the relevant Plant and Materials.
- The Contract Price is payable in various currencies, and the sequence of items in the Statement for Interim Payment Certificates is specified, including deductions, additions, and certified amounts from previous Payment Certificates.
- The Schedule of Payments in the Contract may define the estimated contract values for interim payments, with provisions for adjustments if actual progress is less than that on which the schedule was based.
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Description
This quiz examines the components of Interim Payment Certificates and Schedule of Payments in construction contracts, including estimated contract values, deductions, additions, and conditions for the certification of Plant and Materials. It also covers the currencies in which the Contract Price is payable and the specified sequence of items in the Statement for Interim Payment Certificates.
