Interim Payment Certificate (IPC) Interim payments occur through out the construction period. The primary mechanism by which the contractor gets paid for the work carried out. This becomes the cash how between the employees at the pre - determined intervals. (monthly) These payments are determined by the value of work carried out by the contractor during this period. In general this may call monthly valuations. Sometimes the interim valuations can be called stage payments or milestone payments paid at specific times when the contractor achieves the various stages of completion ( eg : substructure, ground floor level, wall & floor, finishes of ground floor, 1st floor ) Works (as billed) for purpose of payments, 1. 2. 3. 4. 5. 6. Measured work including preliminaries. The value of variations & extra work. Value of nominated subcontractor’s work. Fluctuation it any (price escalation) Unfixed material & goods on site. The retention percentage Retention money - Deduct 10% of work done from each IPC and the limit of retention is 5% (5% of the contract sum) Retention money is kept to reduce the risk of any defects done by the contractor. In preparation of monthly certificate the above are to be adjusted accordingly Consultant / Engineer to the contract issue a certificate as per the contract to the contractor. (within the duration – normally 21 days) Contractor give the bills & supporting documents & to the Consultant / Engineer. Then the Engineer / Consultant should prepare the IPC within 21days.Once the IPC is made employees should pay the contractor within 14days. SBD 2 – section II 14.5 1. Value of variations 3. Rs. ( Rs. ) ) ) Rupees ………………. Advance recovery (25% of sub total II) 7. ( Rs. Fluctuations sub total Deductions 6. Rs. Balance due to the contractor Rs. Rs. …………… ……………………… Chief Quantity surveyor ………………………… Principle Architect . Rs. Previous payments 9.. Value of work done upto 2. Material of site Add sub total 5. Rs. ( Rs. : Rs…………… Date of completion ………….. Value of extra work 4.Interim Payment Certificate No : 04th sep 2011 Project Client Contractor Contractor sum Maximum retension money (5% of the contract sum) Mobilization Advance received : : : : Rs…………… (excluding VAT) : Rs…………… Date of commencement ……. Retention 8. is due to the contractor in respect of Interim payment certificate no. 763.71 This project is entered 2. 63.6 to the consultant M/s Maheesha Associates.( 23.370. retension money Mobilization adv.5% 2. 75.72 Rs.749. 6.959.88 Rs.22 Recommended extra work Rs. The contract sum is Rs.934.228. 75. 2.00 Total variation amount is Rs.230.370.997. Value of extra work 4.94 1.61 Rs. Chief Quantity Surveyor ……………………… Principal Architect . 73.26 The previous recommended payment Rs.584.157.( 6.768.12) Rs.953.910.259. Retention (limit 5% of contract sum) 7. 26.749.72) Rs.140. 95.5% of work done) 5. 16.134.6 Interim payment certificate No.6 ……………………….58 Material at site is Rs. 16.40 (excl VAT) Advance received Rs.354. 26. 1. Advance recovery 6.88 The total recommended value of work done up to 20 th august 2011 is Rs. Previous payment Balance due to the contractor Rupees one million eight hundred and fourteen thousand and two hundred and twenty eight and ninety four cents is due to the contractor in respect of interim payment certificate No.959.Proposed office building for ICBT at Bambalapitiya The contractor submitted Interim valuation No.529.Value of work done up to 20th august 2011 Discount 2.49 Rs. 2.157.58 Rs.140..259.( 63. 134. Assume that you are the project Qs & prepare PC No.934.22 Rs.554.443. received : : : : : : Proposed office building for ICBT Bambalapitiya ICBT Bambalapitiya Rs.477. Value of variations 3.940.00 Rs.989. Material at site (80%) Can give discount to material at site as well Because it is in original contract Sub total Add (Discount 2.989.5% discount for original contract items by the contractor.768.40 Rs.910.477.769. 3. 2.814.873.997.08 Rs.529.6 04th sep 2011 Project Client Contractor Contract sum Max.71) Rs.949.554. 1) A property develop is getting the instruction from their consultants M/s Grasshopper Ltd.000. Proposed class room block for ICBT campus Mt. The previous payment made to the contract M/s Bull builders is Rs.Key Issues in Interim and final valuations Since the quantities set out in the BOQ ( CTAD/SBD/02) – condition of contact – clause 14. VAT) Construction period – 1 year At the 5th month certified value of work done by the Grasshoppers Ltd.00 inclusive of variation and extra work.Lavinia assuming consultant project Qs and comment about the due payment as per ICTAD .250. is Rs.00 Mobilization paid according to the ICTAD condition of contract (ICTAD/SBD/02/section I – 36. to release due payment to the contraction M/s Bull Builders Ltd.524. 13. Initial contract sum is Rs. 25 million (ex.1 page 28) Calculate the due sum for the Bull builders with respect of 5th valuation submitted on 1st September 2011. 8.500.