SBD 02 Payment Procedure

1. Time lapse of Overall payment procedures

2. Advance payment procedure
3. Application for Interim payment certificate
4. Delay payment procedure.
5. Retention payment and Statement at Completion procedure.
6. Final Payment procedure.

Assumption: Role of Engineer is assumed to be done by Consultant QS

Time lapse of Overall payment procedures

According to
According to clause According to clause 14.7
Contactor submit to
14.5 Consultant QS clause 14.6. b Employer pay
Consultant QS
issue Interim Payment Employer pay Contractor with
Application of Interim
Certificate Contractor financing charge
payment Certificate
according clause 14.3

>14 Days
IPA ≤14 Days
≤ 21 Days
payment
s

Consultant QS verify
Final the statement, If need ≤14 Days ≤56 Days
Payment Contractor QS submit
further information

Contactor submit to
Contactor submit to Consultant QS Employer pay
Consultant QS draft
Consultant QS submit issue Final Contractor
final statement
Final Statement Payment according to
payment according
according clause 14.10 Certificate clause 14.6 .c
clause 14.10
and discharge according according to
to clause 14.11 clause 14.12
 Advance payment procedure

Employer should pay First Interim

payment certificate within 14 days of
receiving, Performance guarantee,
Consultant QS prepare and Advance payment guarantee.
and issue LOA Refer clause 14.6.a

1 4

Consultant QS need to issue Interim

Within 14 days, Contractor QS need to
payment certificate after checking
submit performance guarantee and
guarantees submitted. . Refer clause
Advance Payment guarantee. Refer
14.2
clause 36.1 Instruction to bidders

3
2

Contractor QS need to submit Consultant QS need to check the

Application for Interim Payment expiry date of bonds, amounts of
Certificate. . Refer clause 14.2 bound, validity period of bonds,
entity which has provided bond,
format of bond. . Refer clause 14.2

Refer below for highlighted Contractual provisions

 Application for Interim payment certificate

Contractor QS
prepare IPA

Contractor QS check whether

IPA amount is grater that
minimum amount mentioned in
Contract data, if yes submit
otherwise don’t.

Contractor QS submit IPA in 3 copies

with supporting documents, Progress
reports in a format acceptable to After Issuing IPC by consultant qs
Consultant QS. Clause 14.3 within 14days Employer need to
pay Contractor. Clause 14.6 .b

Consultant QS receive IPA. And

send receipt note

Consultant QS after
receiving IPA within
21days issue Interim
payment certificate if
Consultant QS check and correct no issues are
IPA. Clause 14.5 encountered. Clause
14.5

Consultant QS after correcting the IPA ensure that

amount entitle to pay to the Contractor is greater than Even if the Corrected IPA is
minimum amount stipulated in Contract Data. If yes greater than minimum amount
certify amount if not reject IPA. Clause 14.5 stipulated in Contract Data.
Interim payment certificate can
be withheld .Clause 14. 5. a,
14.5. b
Refer below for highlighted Contractual provisions

`
 Delay payment procedure.

After Issuing IPC by Consultant

QS within mentioned days
Employer need to pay
Contractor. Clause 14.6

Employer fail to pay within

stipulated time.S

Employer pay the Contractor as a

delayed payment.

Contractor QS prepare claim

against Employer for delayed
payments as financial charges for
delaying the payments. Clause
14.7
 Retention payment and Statement at Completion

Issuing taking over After 84 days, Contractor

certificate by Consultant QS need to submit
QS. Statement at Completion in
3 copies with supporting
documents. Clause 14.9

Half of the retention

Consultant QS check and
amount will be released.
correct the Statement at
Clause 14.8
Completion and shall
certify the amount and
Issue payment certificate.
Clause 14.9

After Defect Notification period,

if the Consultant QS certify that
all the works notified is
corrected

Remaining retention money will be

released, if not Consultant QS will be
entitled to withheld certificate of the
estimated cost of this works until it is
executed . Clause 14.8
 Final Payment procedure.

After issuing Final payment certificate

within 56 days Employer should pay
After Consultant QS Contractor. Clause 14 .6. C
issuing Performance
Certificate

Consultant QS after receiving Final

Within 56 days, Contractor QS
should submit 6 copies of draft final
statement with supporting documents
to Consultant QS. Clause 14.10
If Consultant QS does not agree with
some parts of draft, Contactor QS
need to submit further information.
Clause 14.10
statement, and Discharge within 28
days need to issue Final Payment
Certificate. Clause 14.12
If Contractor fail to submit final
statement, Engineer should notify him.
After 28 days from Notice if
Contractor fail to submit, any amount
determine by Engineer will be issued
as Final Payment Certificate. Clause
14.12
Contractor shall prepare and submit
“Final Statement” according to agreed
draft final statement Clause and submit
written discharge. Clause 14.11

If Consultant QS and If Consultant QS and Contractor QS

Contractor QS does not agree agree with total draft,
with total draft,

If Dispute resolved

Consultant QS should sent

Employer agreed parts of draft
final statement (with copy to
Contractor) Clause 14.10
Dispute part of draft final stamen
will be deal with Arbitration
(clause 19.6) and procedure for
Disputes (clause 19.3) .
According to clause 14.10