Page 41 - Interactive report Ar Site Practice

1) INTERIM CERTIFICATE AND PROGRESS PAYMENT

DEFINITION WHAT IS PAYMENT TO CONTRACTOR &

In construction projects payments to INTERIM CERTIFICATE?
a contractor are made through
invoices (Interim payments) Contractors rely on interim payment
including all relevant details about certificates to provide the essential cash-
the quantities executed and the sums flow for their projects. A contract would
of money to be earned. Each invoice ordinarily stipulate the interval in which
has a certificate which is typically a progress claims are made, certificates are
summary page showing the previous, issued, and payments made on those
current and total earnings in certificates.

addition to deductions or discounts.

INTERIM CERTIFICATE

The most important aspect of these decision-making powers relates to the issue of
certificates. In construction industry, there are three main types of certificates
found in construction contracts, namely interim certificates, final certificates and
certificates recording an event. However this study only focuses on the issue
relating to the interim payment and interim certificates. Interim certificates exist
simply as a mechanism for confirming that an installment of the consideration is
due to the contractor. Whichever method is used to calculate the amount of money
due, an interim certificate is not conclusive about anything. It says nothing about
quality of materials or workmanship, nor does it indicate satisfaction with the work

done to date.

Interim certificates exist simply as a mechanism for confirming that an installment of
the consideration is due to the contractor. Whichever method is used to calculate the
amount of money due, an interim certificate is not conclusive about anything. It says
nothing about quality of materials or workmanship, nor does it indicate satisfaction

with the work done to date

Interim certificates are certifications of payments made in accordance with a
timetable in the contract. In essence, the certification is a statement by the architect
or engineer that during the period covered by the certificate, the contractor has
carried out and supplied materials up to the value shown in the certificate, as well as
the nett amount which the contractor is entitled to be paid, after allowing for the
adjustments permitted by the terms of the contract. There certifications are never
intended to be a precise determination of the value of the works