FIDIC_Payment Process

Scenario: You have been appointed as the Contractor in terms of the FIDIC Conditions of Contract for Construction (Red Book), 2017 for the construction of a train station in the Northern Cape. ??

Question: Do you know

·????????when the Engineer ought to certify an Interim Payment Certificate (IPC)

·????????when can you terminate due to non-payment?

Answer: Have a look at our crib sheet to become familiar with the steps in the payment process.

NB!

Remember that the FIDIC says that -

1. Statements can be submitted monthly or according to the period of payment as stated in the Contract Data.?Each Statement must:

• Be in a form acceptable to the Engineer;
• Submitted on one paper-original, one electronic copy and additional paper copies as stated in the Contract Data; and
• Show in detail the amounts which the Contractor considers he is entitled to. ??

2. When the Engineer makes a fair determination of the amount due to the Contractor, it includes:

• Current estimated contract value
• Any adjustment due to legislative changes or cost fluctuations
• The retention amount
• The advance payment
• Amounts for Plant and Materials
• Amount of Contractor claims or deductions for Employer claims, including those due under sub-cl 3.7 [Determinations]
• Any amounts to be added for Provisional Sums
• Any amounts to be added for release of retention
• Any amounts to deducted for the Contractor’s use of utilities
• Deduction of amounts previously certified