Interim certificates in construction contracts - Revision history

Designing Buildings at 09:57, 12 January 2023

2023-01-12T09:57:05Z

← Older revision		Revision as of 09:57, 12 January 2023
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−	Interim certificates provide a mechanism for the client to make payments to the contractor before the works are complete. The Housing Grants, Construction and Regeneration Act, states that a party to a construction contract in excess of 45 days is entitled to interim or stage payments.	+	[[File:PaymentClock.jpg]]
		+
		+	= What are interim certificates? =
		+
		+	Interim certificates provide a mechanism for the client to make payments to the contractor during the construction process, before the works are complete. The Housing Grants, Construction and Regeneration Act, states that a party to a construction contract in excess of 45 days is entitled to interim or stage payments.
		+
		+	= How are interim payments made? =

	Interim payments can be agreed in advance and paid at particular milestones, but they are more commonly, regular payments, the value of which is based on the value of work that has been completed (this is the actual value of the work completed, taking into account variations, etc.).		Interim payments can be agreed in advance and paid at particular milestones, but they are more commonly, regular payments, the value of which is based on the value of work that has been completed (this is the actual value of the work completed, taking into account variations, etc.).
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	The amount of these payments is entered onto an interim certificate (generally valued by the cost consultant, perhaps having taken advice from the lead designer) and the client must honour the certificate within the period stipulated by the contract.		The amount of these payments is entered onto an interim certificate (generally valued by the cost consultant, perhaps having taken advice from the lead designer) and the client must honour the certificate within the period stipulated by the contract.

−	If the client intends to pay a different amount from that shown on the interim certificate, then they must give notice to the contractor of the amount they intend to pay and the basis for its calculation (pay less notice - see Housing Grants, Construction and Regeneration Act ~~for more information)~~.	+	If the client intends to pay a different amount from that shown on the interim certificate, then they must give notice to the contractor of the amount they intend to pay and the basis for its calculation (pay less notice)
		+
		+	For more information see: Housing Grants, Construction and Regeneration Act.
		+
		+	= How are interim payments valued? =

	The value of interim certificates is the value of the work completed, less any amounts already paid, less retention. Half of this retention will be released on certification of practical completion and the other half upon issue of the certificate of making good defects.		The value of interim certificates is the value of the work completed, less any amounts already paid, less retention. Half of this retention will be released on certification of practical completion and the other half upon issue of the certificate of making good defects.
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	Interim certificates should make clear the amount of retention and a statement should also be prepared showing retention for nominated sub-contractors if there are any. The contract may require that retention is kept in a separate bank account and that this is certified. In this case, the client will generally keep any interest paid on the account.		Interim certificates should make clear the amount of retention and a statement should also be prepared showing retention for nominated sub-contractors if there are any. The contract may require that retention is kept in a separate bank account and that this is certified. In this case, the client will generally keep any interest paid on the account.

−	There may be ~~particular~~ provision to include the value of particularly costly materials that the contractor has not yet delivered to site. This allows the contractor to order items in good time, without incurring unnecessary long-term expense, but does put the client at some risk if the contractor becomes insolvent.	+	For more information see: Retention.
		+
		+	There may be provision to include the value of particularly costly materials that the contractor has not yet delivered to site. This allows the contractor to order items in good time, without incurring unnecessary long-term expense, but does put the client at some risk if the contractor becomes insolvent.
		+
		+	For more information see: Off-site goods and materials.
		+
		+	On design and build projects, the amounts certified as payable may be based on the contract sum analysis.

−	~~On design and build projects,~~ the ~~amounts certified as payable may be based on a~~ contract ~~sum analysis~~.	+	The contract conditions provide that the contract administrator must issue an interim certificate within five calendar days of the due date whether or not the contractor has issued an interim payment application. This five calendar day period is set by statute in the [[Housing_Grants,_Construction_and_Regeneration_Act_HGRA\|Housing Grants, Construction Regeneration Act 1996]] as amended by the Local Democracy, Economic Development and Construction Act 2009.

−	The contract conditions provide that the contract administrator must issue an interim certificate within five [calendar] days of the due date whether or not the contractor has issued an interim [payment] application. This five [calendar] day period is set by statute in the [[Housing_Grants,_Construction_and_Regeneration_Act_HGRA\|Housing Grants, Construction Regeneration Act 1996]] as amended by the Local Democracy, Economic Development and Construction Act 2009. Being set by statute, the time period cannot be changed.	+	For more information see: Payment notice.

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Activity schedule.		* Activity schedule.
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	* Retention.		* Retention.

−	=== External references ===	+	= External references =

	* [http://www.isurv.com/site/scripts/documents.aspx?categoryID=76 RICS Valuations for interim certificates.]		* [http://www.isurv.com/site/scripts/documents.aspx?categoryID=76 RICS Valuations for interim certificates.]

Editor at 17:52, 15 April 2021

2021-04-15T17:52:10Z

← Older revision		Revision as of 17:52, 15 April 2021
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	* Contract sum analysis.		* Contract sum analysis.
	* Cost value reconciliation.		* Cost value reconciliation.
		+	* Drawdown.
	* Due date.		* Due date.
	* Final certificate.		* Final certificate.

Designing Buildings at 06:41, 27 August 2020

2020-08-27T06:41:31Z

← Older revision		Revision as of 06:41, 27 August 2020
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	* Allan K Construction contracts 2017 @qs 2 kings entertainment		* Allan K Construction contracts 2017 @qs 2 kings entertainment

−	[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Project_Knowledge]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings: Reverted edits by Harchitine (talk) to last revision by Designing Buildings

2020-01-05T09:24:10Z

Reverted edits by Harchitine (talk) to last revision by Designing Buildings

← Older revision		Revision as of 09:24, 5 January 2020
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	The amount of these payments is entered onto an interim certificate (generally valued by the cost consultant, perhaps having taken advice from the lead designer) and the client must honour the certificate within the period stipulated by the contract.		The amount of these payments is entered onto an interim certificate (generally valued by the cost consultant, perhaps having taken advice from the lead designer) and the client must honour the certificate within the period stipulated by the contract.
−
−	~~=== Structure ===~~
−
−	~~1 - Interim valuation date : Date stated in the contract particulars - contractor serves application on or before~~
−
−	~~2 - Due date : 9 days later~~
−
−	~~3 - Interim payment certificate : Issued by CA / Architect not more than 5 days after the due date~~
−
−	~~4 - Pay less notice : Not more than 9 days after the due date~~
−
−	~~5 - Final date for payment : 14 days after the due date~~
−
−	~~=== Pay Less ===~~
−
−	~~JCT SBC / Q 2016 clauses 4.11.5 and 4.12.1~~

	If the client intends to pay a different amount from that shown on the interim certificate, then they must give notice to the contractor of the amount they intend to pay and the basis for its calculation (pay less notice - see Housing Grants, Construction and Regeneration Act for more information).		If the client intends to pay a different amount from that shown on the interim certificate, then they must give notice to the contractor of the amount they intend to pay and the basis for its calculation (pay less notice - see Housing Grants, Construction and Regeneration Act for more information).
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	On design and build projects, the amounts certified as payable may be based on a contract sum analysis.		On design and build projects, the amounts certified as payable may be based on a contract sum analysis.

−	~~JCT SBC / Q 2016 clauses 4.8 and 4.9 :~~ The contract conditions provide that the contract administrator must issue an interim certificate within five [calendar] days of the due date whether or not the contractor has issued an interim [payment] application. ~~Being~~ set by statute, the ~~5 day time period cannot be changed.~~	+	The contract conditions provide that the contract administrator must issue an interim certificate within five [calendar] days of the due date whether or not the contractor has issued an interim [payment] application. This five [calendar] day period is set by statute in the [[Housing_Grants,_Construction_and_Regeneration_Act_HGRA\|Housing Grants, Construction Regeneration Act 1996]] as amended by the Local Democracy, Economic Development and Construction Act 2009. Being set by statute, the time period cannot be changed.
−		+
−	~~=== Fair Payment Practices ===~~	+
−		+
−	~~The~~ [[Housing_Grants,_Construction_and_Regeneration_Act_HGRA\|Housing Grants, Construction Regeneration Act 1996]] ~~includes provisions to ensure that payments are made promptly throughout~~ the ~~supply chain~~. ~~These provisions include~~ the ~~right to~~ be ~~paid in interim, periodic / stage payments~~.	+

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Harchitine at 17:27, 4 January 2020

2020-01-04T17:27:16Z

← Older revision		Revision as of 17:27, 4 January 2020
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	The amount of these payments is entered onto an interim certificate (generally valued by the cost consultant, perhaps having taken advice from the lead designer) and the client must honour the certificate within the period stipulated by the contract.		The amount of these payments is entered onto an interim certificate (generally valued by the cost consultant, perhaps having taken advice from the lead designer) and the client must honour the certificate within the period stipulated by the contract.
		+
		+	=== Structure ===
		+
		+	1 - Interim valuation date : Date stated in the contract particulars - contractor serves application on or before
		+
		+	2 - Due date : 9 days later
		+
		+	3 - Interim payment certificate : Issued by CA / Architect not more than 5 days after the due date
		+
		+	4 - Pay less notice : Not more than 9 days after the due date
		+
		+	5 - Final date for payment : 14 days after the due date
		+
		+	=== Pay Less ===
		+
		+	JCT SBC / Q 2016 clauses 4.11.5 and 4.12.1

	If the client intends to pay a different amount from that shown on the interim certificate, then they must give notice to the contractor of the amount they intend to pay and the basis for its calculation (pay less notice - see Housing Grants, Construction and Regeneration Act for more information).		If the client intends to pay a different amount from that shown on the interim certificate, then they must give notice to the contractor of the amount they intend to pay and the basis for its calculation (pay less notice - see Housing Grants, Construction and Regeneration Act for more information).
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	On design and build projects, the amounts certified as payable may be based on a contract sum analysis.		On design and build projects, the amounts certified as payable may be based on a contract sum analysis.

−	The contract conditions provide that the contract administrator must issue an interim certificate within five [calendar] days of the due date whether or not the contractor has issued an interim [payment] application. ~~This five [calendar] day period is~~ set by statute in the [[Housing_Grants,_Construction_and_Regeneration_Act_HGRA\|Housing Grants, Construction Regeneration Act 1996]] ~~as amended by~~ the ~~Local Democracy, Economic Development and Construction Act 2009~~. ~~Being set by statute,~~ the ~~time period cannot~~ be ~~changed~~.	+	JCT SBC / Q 2016 clauses 4.8 and 4.9 : The contract conditions provide that the contract administrator must issue an interim certificate within five [calendar] days of the due date whether or not the contractor has issued an interim [payment] application. Being set by statute, the 5 day time period cannot be changed.
		+
		+	=== Fair Payment Practices ===
		+
		+	The [[Housing_Grants,_Construction_and_Regeneration_Act_HGRA\|Housing Grants, Construction Regeneration Act 1996]] includes provisions to ensure that payments are made promptly throughout the supply chain. These provisions include the right to be paid in interim, periodic / stage payments.

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Designing Buildings at 10:57, 20 August 2019

2019-08-20T10:57:35Z

← Older revision		Revision as of 10:57, 20 August 2019
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	* Activity schedule.		* Activity schedule.
	* Certificate of making good defects.		* Certificate of making good defects.
		+	* Certificates in the construction industry.
	* Contract sum analysis.		* Contract sum analysis.
	* Cost value reconciliation.		* Cost value reconciliation.

Designing Buildings at 15:15, 19 August 2019

2019-08-19T15:15:58Z

← Older revision		Revision as of 15:15, 19 August 2019
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	The contract conditions provide that the contract administrator must issue an interim certificate within five [calendar] days of the due date whether or not the contractor has issued an interim [payment] application. This five [calendar] day period is set by statute in the [[Housing_Grants,_Construction_and_Regeneration_Act_HGRA\|Housing Grants, Construction Regeneration Act 1996]] as amended by the Local Democracy, Economic Development and Construction Act 2009. Being set by statute, the time period cannot be changed.		The contract conditions provide that the contract administrator must issue an interim certificate within five [calendar] days of the due date whether or not the contractor has issued an interim [payment] application. This five [calendar] day period is set by statute in the [[Housing_Grants,_Construction_and_Regeneration_Act_HGRA\|Housing Grants, Construction Regeneration Act 1996]] as amended by the Local Democracy, Economic Development and Construction Act 2009. Being set by statute, the time period cannot be changed.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Activity schedule.		* Activity schedule.

197.211.224.158 at 08:04, 12 June 2019

2019-06-12T08:04:13Z

← Older revision		Revision as of 08:04, 12 June 2019
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	* [http://www.isurv.com/site/scripts/documents.aspx?categoryID=76 RICS Valuations for interim certificates.]		* [http://www.isurv.com/site/scripts/documents.aspx?categoryID=76 RICS Valuations for interim certificates.]
−	* Allan K Construction ~~conracts~~ 2017 @qs 2 kings entertainment	+	* Allan K Construction contracts 2017 @qs 2 kings entertainment

	[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

197.211.224.158 at 08:02, 12 June 2019

2019-06-12T08:02:49Z

← Older revision		Revision as of 08:02, 12 June 2019
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	* [http://www.isurv.com/site/scripts/documents.aspx?categoryID=76 RICS Valuations for interim certificates.]		* [http://www.isurv.com/site/scripts/documents.aspx?categoryID=76 RICS Valuations for interim certificates.]
		+	* Allan K Construction conracts 2017 @qs 2 kings entertainment

	[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 12:33, 28 February 2018

2018-02-28T12:33:42Z

← Older revision		Revision as of 12:33, 28 February 2018
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	On design and build projects, the amounts certified as payable may be based on a contract sum analysis.		On design and build projects, the amounts certified as payable may be based on a contract sum analysis.

−	The contract conditions provide that the contract administrator must issue an interim certificate within five [calendar] days of the due date whether or not the contractor has issued an interim [payment] application. This five [calendar] day period is set by statute in the Housing Grants, Construction Regeneration Act 1996 as amended by the Local Democracy, Economic Development and Construction Act 2009. Being set by statute, the time period cannot be changed.	+	The contract conditions provide that the contract administrator must issue an interim certificate within five [calendar] days of the due date whether or not the contractor has issued an interim [payment] application. This five [calendar] day period is set by statute in the [[Housing_Grants,_Construction_and_Regeneration_Act_HGRA\|Housing Grants, Construction Regeneration Act 1996]] as amended by the Local Democracy, Economic Development and Construction Act 2009. Being set by statute, the time period cannot be changed.

	= Find out more =		= Find out more =