o (b) Include due additions/deductions (under 3.
7, Contract, or otherwise)
[cite: 2, 246(b)].
o Include detailed supporting particulars explaining differences from
Statement.
Slide 54: Sub-Clause 14.6.2 - Withholding IPCs (Threshold)
• Title: Withholding Certification? Reason 1: Minimum Amount (14.6.2)
• Content: Before TOC, Engineer may withhold an IPC if net amount (after
retention/deductions) is less than minimum IPC amount in Contract Data. Engineer
must give Notice promptly.
Slide 55: Sub-Clause 14.6.2 - Withholding Amounts (Other Reasons)
• Title: Withholding Certification? Reason 2: Specific Issues (14.6.2)
• Content: An IPC shall not be withheld for any other reason, ALTHOUGH specific
amounts may be withheld if:
o (a) Non-conforming work/supply: estimated cost of rectification withheld
until done [cite: 2, 249(a)].
o (b) Failure to perform obligation: value withheld until performed (Requires
Engineer Notice with details) [cite: 2, 250-251(b)].
o (c) Significant error/discrepancy in Statement/docs: Amount excluded if
proper investigation prevented, until corrected [cite: 2, 252(c)].
Slide 56: Sub-Clause 14.6.2 - Justification for Withholding
• Title: Transparency in Withholding
• Content: For each amount withheld under 14.6.2(a), (b), or (c), the Engineer MUST
detail the calculation and state the reasons in the IPC supporting particulars.
Slide 57: Sub-Clause 14.6.3 - Correction & Contractor's Recourse
• Title: Fixing Errors & Disputing Omissions (14.6.3)
• Content:
o Engineer may correct/modify any previous Payment Certificate.
o A Payment Certificate does NOT signify acceptance/approval of Docs or
Works.
o If Contractor considers IPC omits entitled amounts: Include again in next
Statement ("identified amounts").
o If still omitted in next IPC (and not already under 3.7 review): Contractor may
give Notice to refer to Engineer for 3.7 Determination [cite: 2, 260-261]. Time
limit starts from Engineer receiving Notice.
Slide 58: Sub-Clause 14.6 - Key Takeaways & Links
• Title: Module 6 Recap: IPC Issuance & Withholding
• Content:
o Preconditions (Security 4.2.1, Rep 4.3) essential [cite: 2, 243-244].
o Engineer certifies within 28 days, justifying differences [cite: 1, 2, 245-246,
411].
o Withholding very limited: threshold or specific, notified issues (non-
conformance, obligation failure, errors) [cite: 1, 2, 247-253, 415].
o Engineer can correct; Contractor can re-claim via Statement or 3.7 [cite: 1, 2,
256-261, 412].
• Related Clauses: 4.2.1, 4.3, 14.3, 3.7.
Slide 59: Module 7 - Sub-Clause 14.7: Payment (Employer's Duty)
• Title: Employer's Turn: Executing Payment (14.7)
• Content: Defines the Employer's strict deadlines for making payments based on
receipt of the relevant certificates [cite: 1, 2, 262-265, 418].
Slide 60: Sub-Clause 14.7 - Payment Deadlines (Contract Text & Defaults)
• Title: Payment Timelines: When is Money Due?
• Content: Employer shall pay Contractor:
o (a) Advance Payment Cert amount: Within period in Contract Data (Default:
21 days) after Employer receives certificate [cite: 2, 262(a)].
o (b)(i) IPC (from 14.6) amount: Within period in Contract Data (Default: 56
days) after Engineer receives Statement + docs [cite: 2, 263(b)(i)].
o (b)(ii) IPC (from 14.13 path) amount: Within period in Contract Data (Default:
28 days) after Employer receives IPC [cite: 2, 264(b)(ii)].
o (c) FPC amount: Within period in Contract Data (Default: 56 days) after
Employer receives FPC [cite: 2, 265(c)].
Slide 61: Sub-Clause 14.7 - Payment Mechanics
• Title: How Payment is Made: Currency & Account
• Content: Payment of amount due in each currency made into the bank account
nominated by Contractor, in the payment country specified for that currency.
Slide 62: Sub-Clause 14.7 - Importance & Consequences of Non-Payment
• Title: Why Adhering to 14.7 Matters
• Content:
o Provides payment certainty essential for Contractor cash flow.
o Enables project financing and planning.
o Failure to comply triggers Contractor remedies:
Financing Charges (Interest) under Sub-Clause 14.8.
Potential Suspension of Work under Sub-Clause 16.1.
Slide 63: Module 8 - Sub-Clause 14.8: Delayed Payment (Contractor Remedy)
• Title: Remedy for Late Payment: Financing Charges (14.8)
• Content: If Contractor does not receive payment per 14.7, entitled to financing
charges compounded monthly on unpaid amount during delay period. Supports
commercial fairness.
Slide 64: Sub-Clause 14.8 - Trigger & Calculation Period
• Title: When Does Interest Start Accruing?
• Content: Delay period deemed to commence on the expiry of the time for payment
specified in 14.7. This is irrespective (for IPCs under 14.7(b)(i)) of when the IPC was
actually issued. Starts day after payment was due.
Slide 65: Sub-Clause 14.8 - Interest Rate Calculation (Defaults)
• Title: Calculating the Interest Rate
