The payment mechanism under the FIDIC 1987 form of contract is as follows, assuming no

amendment to the general conditions. The wording of the relevant clauses is not clear and I can
appreciate how the confusion has arisen.
cl60.1; the Contractor submits the "monthly statement"; (day 0)
cl60.2; following receipt of the "monthly statement" the Engineer SHALL (mandatory) deliver an
"Interim Payment Certificate" to the Employer. A period of 28 days is allowed for this; (latest date for
delivery is day 28).
cl60.10; the time for payment to be made by the Employer is within 28 days of having received the
Interim Payment Certificate; (due date for payment is day 56).
cl69.4; provides the Contractor with a right to suspend work, or reduce the rate of progress, in the
even of the Employer failing to make payment within the time allowed; that is on or before day 56.
If the Contractor intends to suspend performance, or reduce the rate progress, it must firstly give a
period of notice (28 days) and can only suspend or reduce progress when the period of notice has
expired.
The Contractor can give the notice of intention to suspend/reduce performance as soon as the
payment is not made on or before the due date as calculated above; that is he can issue his notice on
day 57 and the right to suspend will become effective on day 85 (being day 57 + 28 days).
Cl69.4 does allow the Employer a period of grace after the due date for payment; therefore the latest
date for payment is day 84 (being day 56 + 28 days).
If the Contractor delays issuing the notice of intention to suspend/ reduce performance, the date on
which the suspension action can be commenced is also delayed. For example, if the latest date for
payment is day 84 and the Contractor does not issue his notice until after this date (say day 100) he
cannot commence the suspension until day 128.

I hope that this assists you. If you have any queries, please contact me again.
Kind regards,
John Dowse
John Dowse can be contacted by e-mail to courtroom@hotmail.co.uk