FIDIC Standard Forms – Clauses on Certificates & Payment

Clause 14: Contract Price and Payment (Red / Yellow / Silver / Green Books)
Advance Payment (Clause 14.2)
 Employer may agree to advance funds to the Contractor, secured by a performance guarantee
and advance payment guarantee (Sub-Clauses 14.2.1 & 14.2.2).
 Advance payment must be covered within 35–42 days, per contract data, and interest charged on
delays
Interim Payment (Clause 14.6)
 Contractor submits a Statement (not previously called an application) with supporting documents.
 The Engineer must issue an Interim Payment Certificate (IPC) within 28 days if the documents
are compliant
 Employer must pay the certified amount within 56 days of receipt of the statement
Schedule of Payments (Clause 14.4)
 Sets out a contract-specific schedule (often in tender documents) for periodic interim payments
Delayed Payment (Clause 14.8)
 If the Employer fails to pay the certified amount within the prescribed time, the Contractor is
entitled to financing charges (interest), typically compounded monthly, with the rate set in
contract data
Retentions, Final Statement & Final Payment Certificate (Clauses 14.9, 14.11, and 14.13)
 Retention money released per schedule, often partly on issue of Interim Certificate and part on
Final Payment
 Contractor submits Draft Final Statement within 56 days of the Performance Certificate issued
at the end of the defects notification period (Clause 11.9)
 Engineer issues the Final Payment Certificate (FPC) within 28 days of receiving the final
statement and written discharge; otherwise he may issue a certificate for the agreed portion under
a partially agreed statement (Sub-Clauses 14.11–14.13)
Key Responsibilities of the Engineer
 The Engineer is appointed by the Employer but must act ‘fairly’ when certifying payments
(Sub-Clause 3.5) and is responsible for issuing both interim and final payment certificates.The
Engineer may also make fair determinations on contract claims, including payment-related issues,
in accordance with contract timelines (Clause 20)

Summary Table – FIDIC Clause 14 Functions

Sub-Clause(s) Function
14.2 Advance Payment and associated Guarantee
14.3 / 14.4 Application/Statement & Schedule of Payments
14.6 Interim Payment Certificate issuance (28 days)
14.7 Employer must pay certified amount (56 days)
14.8 Interest on delayed payment (financing charges)
14.9 Release of retention monies
14.11 Draft Final Statement submission
14.13 Issuance of Final Payment Certificate

JCT Standard Contracts (SBC, D&B, IC, MW)

JCT Standard Building Contract (SBC) & Variants
 Interim Valuation Date is set in the Contract Particulars (commonly monthly)
 Due Date for Payment is 7 days after the Interim Valuation Date
 Interim Certificate (Payment Notice) must be issued by the Contract Administrator within 5
days after the due date, stating the amount the employer considers due and the basis for
calculation
  If the CA fails to issue the certificate, the contractor may issue a Payment Notice (after the last
date for interim certificate) declaring the amount due and the basis for it.
 Pay Less Notice: If employer intends to pay less than the amount certified or stated, they must
issue a notice at least 5 days before the final date for payment, specifying the lower sum and basis
 Final Date for Payment: Typically 14 days after the due date
 Interest: Payable if employer fails to pay the certified amount by the final date, at 5% above the
Bank of England base rate .
 Suspension Rights: If payment is overdue 7 days after notice of intent to suspend (and sent to CA),
contractor may suspend work with entitlement to further costs
NEC3 / NEC4 Engineering & Construction Contract (ECC)
 Assessment Dates are set in Contract Data; generally monthly. Contractor submits application
before the assessment date Project Manager issues Payment Certificate within 1 week of each
assessment date (Clauses 50.1 / 50.3)
 The certificate shows the amount due, based on defined cost/price for work done to date, adjusted
since previous certificate
 Final Account Submission: Contractor must submit within four weeks of the Defects Certificate;
PM issues Final Payment Certificate to conclude financial obligations (Clause 53)
 Late Payment Interest: Payable if employer fails to meet payment by date specified—interest
applied daily, compounded annually as per Clause 51.2–51.4 .
ICE Conditions of Contract (historical)
ICE forms (pre-NEC) followed similar architecture: Contract Administrator (often Engineer) certifies
progress payments, final payments, and retention. These were later largely superseded by NEC, so detailed
clause numbers differ across editions and are less used today .
ACA Partnering Forms: PPC2000, TAC-1, FAC-1
These are collaborative, multi-party frameworks emphasizing partnering rather than simple payment
certification:
 Payment Terms are set out in separate Consultant Payment Terms or Specialist Payment
Terms, appended to the main contract
 Payments for consultants or specialists are made in accordance with those embedded terms and
schedules, typically linked to deliverables or project milestones.
 While they reference payment and compensation, they do not include standard interim or final
payment certificates like JCT or NEC forms; rather the amounts are agreed within partnering team
and recorded by Core Group decisions
Comparative Summary
Form Who Certifies Certificate / Notice Timeline Final Payment & Interest
JCT (SBC, Contract Interim certificate within 5 Final date: 14 days post-due;
D&B, IC, MW) Administrator days post-due date; pay less interest at Base + 5%
notice 5 days before final
payment date
NEC3/NEC4 Project Manager Payment certificate within one Final account certification;
ECC week of assessment date; interest per Clause 51 on late
application before that date payments
ICE (historical) Contract Similar to JCT in structure, Retention and final payment
Administrator / varies by edition clauses included in older
Engineer editions
PPC2000, Not defined the Payments managed via Final reconciliation via Core
TAC-1, FAC-1 same way Consultant Payment Terms, not Group agreements—no
certificates statutory interest clauses
AIA A201 – General Conditions of the Contract for Construction (2017 Edition)
Article 9 – Payments and Completion:
 9.1 defines the Contract Sum, including authorized adjustments based on approved changes.
 9.2 – Schedule of Values: Contractor submits a breakdown of values to support Applications for
Payment.
 9.4 – Certificates for Payment:
o 9.4.1: The Architect must issue a Certificate for Payment within seven days of receiving
the Application. They may certify the full amount, a partially certified amount with reasons
for withholding, or withhold certification altogether with notification.
o 9.4.2: Issuance represents a professional judgment that work, quality, and entitlement are
in accordance with contract documents—subject to final acceptance and correction of
minor deviations.
 9.5 – Withholding Certification:
o 9.5.1–9.5.3: Architect may withhold certification if necessary to protect the Owner (e.g.,
for incomplete or defective work). Once issues are resolved, certification must follow.
o 9.5.4: If certification is withheld, the Owner may make joint payments to relevant
subcontractors to preserve supply chain payment integrity.
 9.6 – Progress Payments and Subcontractor Protection:
o 9.6.1: After certification, the Owner must pay within the contractually specified time.
o 9.6.2–9.6.5: Contractor must pay subcontractors within seven days of receipt; Owner may
verify compliance; retained amounts are defined; Owner may pursue joint check
mechanisms if subcontractors remain unpaid.
o 9.6.6: A Certificate, progress payment, partial use or occupancy does not constitute formal
acceptance of nonconforming work.
 , preparation and issuance of Final Payment Certificate, release of retainage, and final payment
within 30 days or contractual timeline.
 9.3.1: Payments withheld are allowed under approved lien waivers or documentation
accompanying the Application.
EJCDC C-Series (Construction) – Standard General Conditions (C-700)
Payment Provisions:
 Contractor submits a Schedule of Values (including quantities, lump-sum or unit rates) to support
Applications for progress payments.
 Engineer issues a Tentative Payment Certificate after review and may attach a punch list of
incomplete items.
 Owner must pay within 10 days after receiving the Engineer’s recommendation (tentative
certificate), unless a formal setoff is claimed.
 Owner may deduct or withhold on account of set-offs or non-compliance. The Engineer can nullify
or adjust Certificates for Payment where valid.
Consensus Docs (200, 400, etc.)
 Although Consensus Docs contracts vary, they follow principles similar to AIA and EJCDC:
o Contractor submits Applications for Payment based on agreed deliverables or schedule.
o Payments are certified by architect or engineer, and due within a specified period post-
certification.
o The Owner retains rights to withhold or adjust payments based on just cause and
contractual procedure.
o Subcontractor payment protection via timely payment clauses is typically included.
Summary Table: US Contract Forms – Certificates & Payment
Form Certifier Timeline & Actions
AIA A201 Architect Certification within 7 days; certification binding unless properly
withheld; Owner pays within contractual timeframe; protections
for subcontractors.
EJCDC C700 Engineer Tentative certificate followed by formal; Owner pays 10 days
after Engineer recommendation; Owner may claim set-offs;
Engineer can nullify certificates.
ConsensusDocs Architect/Engineer Similar mechanics to AIA & EJCDC; detailed payment
schedules and dispute rights included as standard.

CCDC (Canadian Construction Documents Committee) – Payment Clauses

CCDC 2 – 2020 Stipulated-Price Contract
Article A-5: Payment
 A-5.1: Owner must make progress payments to the Contractor on account of the Contract Price
when due, in the amount certified by the Consultant and in compliance with Payment Legislation,
plus applicable taxes. r
 A-5.1.2: Upon Substantial Performance, Owner must pay the unpaid balance of holdback, plus
taxes.
 A-5.1.3: Upon issuance of the Final Certificate for Payment, Owner must pay the unpaid
balance of the Contract Price, plus taxes.
General Conditions: Part 5 Payment
GC 5.2 Applications for Payment
 5.2.1: Applications must be submitted monthly to both Owner and Consultant.
 5.2.2: Application is dated at the end of the payment period (month or agreed day).
 5.2.3–5.2.4: Claimed amount is the value of work performed/products delivered based on an
accepted schedule of values, supported by required evidence.
 5.2.7–5.2.8: Applications must include statutory declarations (e.g., CCDC 9A), confirming
distribution of prior payments and workers’ compensation compliance.
GC 5.3 Payment Certificate
 5.3.1: Consultant must issue a Certificate for Payment within 10 calendar days of receiving the
application, indicating the certified amount.
 5.3.2: Owner must pay within 28 calendar days of application receipt, or in accordance with
applicable Payment Legislation.
 5.3.1–5.3.2: If consultant amends or rejects an application, Owner must notify Contractor promptly,
following Payment Legislation.
GC 5.4 Substantial Performance & Holdback Release
 5.4.1: Consultant issues certificate stating date of Substantial Performance within 20 calendar
days of application.
 5.4.2–5.4.3: Holdback must be held in accordance with lien legislation and released no later than
10 calendar days after lien period expiry (or earlier if permitted by law).
 5.4.5: Progressive part-release of holdback is permitted if performance of designated portions is
certified prior to substantial performance—subject to applicable legislation.
GC 5.5 Final Payment
 5.5.1–5.5.2: Upon Contractor’s application for final payment, Consultant must issue a final
certificate for payment within 10 days, if valid.
 5.5.3–5.5.4: If application is rejected or adjusted, Owner must notify Contractor promptly. Payment
is due within 5 calendars days after issuance of the final certificate (complying with Payment
Legislation).
GC 5.6 Deferred Work
 5.6.1: If some work is deferred (e.g., due to weather), Owner cannot withhold full payment—only
a reasonable amount to cover deferred work cost—once certified.
GC 5.7 Non-Conforming Work
 5.7.1: Payment or occupancy does not constitute acceptance of non-conforming work. Contractor
remains responsible for defects.
GC 5.2–5.3: Additional Terms
 Consultant determines amounts owing and issues certificates (part of GC 5.2 & 5.3).
GC 5.2: Consultant not responsible for workmanship or materials (liability clause).
Summary Table – CCDC 2 Payment Structure
Clause Function Timing / Action Notes
A-5.1 Progress payments by Owner Certified amount when Must align with local
due Payment Legislation
GC 5.2 Submission of payment application Monthly to Owner & Includes schedule-of-values
& supporting docs Consultant and declarations
GC 5.3 Consultant issues Certificate for ≤ 10 days after Owner pays within 28 days (or
Payment application per legislation)
GC 5.4 Holdback release after Substantial ≤ 10 days post-lien Progressive release allowed
Performance period under law
GC 5.5 Final payment certification ≤ 10 days after Owner pays ≤5 days after final
application certificate
GC 5.6 Payment for deferred work Only reasonable Based on consultant
retention certification
GC 5.7 No acceptance by occupancy Non-conformance not Contractor still liable
waived

Standards Australia – AS 4000 / AS 4902 / AS 2124

AS 4000-1997 (Construct Only)—Clause 37 Progress Payments
 Submission of Claims: Contractor submits a payment claim (progress claim) at intervals agreed
in the contract.
 Issuance of Payment Schedule: Within 10 business days, the Superintendent issues a Payment
Schedule, stating:
o value of work done,
o amounts previously paid,
o amounts to be deducted or withheld,
o amount payable, with reasons for any difference
 Payment Timeline: Principal pays the amount certified in the schedule by the later of:
o 15 business days after claim receipt; or
o when the contractor provides required statutory declarations and subcontractor statements
 Final Payment Claim (Clause 39.5): Contractor must submit no later than 28 days after contract’s
defect liability period. The Superintendent must then issue a Final Payment Schedule (Final
Certificate) within 10 business days, with final payment due within 5 business days thereafter
 Final Certificate Conclusiveness (Clause 37.4 of AS 4000, Clause 42.7 of AS 2124): Once
issued, the final certificate is conclusive and binds both parties, except in cases of fraud, latent
defects, computational error, or notices of dispute served within 7 days (AS 4000) or 15 days (AS
2124) after issuance
ABIC (Australian Building Industry Contracts) – Major, Simple, Housing Forms
ABIC Major Works Contract (MW 2018)
  Security Precondition: Owner must receive unconditional performance guarantees before
issuing the first payment certificate; otherwise, payment may be withheld
 Release of Retention (Clauses C7–C9):
o On practical completion, architect issues certificate allowing release of 50% of retention;
contractor issues tax invoice for payment. Remaining retention released upon final
certificate
 Timing of Final Certificate (Clauses Q17, N14):
o Architect must promptly assess claims and issue final payment certificates, enabling
release or drawing on security under structured procedures tied to schedule 1 timings
ABIC Simple Works Contract / Housing Form (SW 2008)
 Similar provisions to Major Works but simplified:
o Architect issues final certificate within 10 business days of receipt of final claim.
o Owner must pay certified amount within the timeframe shown in Schedule 1.
o Contractor may claim if the architect fails to issue a certificate on time

Summary Table
Form Certifier Timeline for Payment Trigger Other Key
Certification Provisions
AS 4000 / Superintendent 10 business days for Payment within Final certificate
AS 2124 interim; 10 for final 15 business days binding, except
(interim) or 5 days certain dispute
(final) exceptions
ABIC Architect First certificate only after Payment per Structured release of
Major guarantees; retention schedule in security and tax
Works release at practical Schedule 1 invoice requirements
completion and final
ABIC Architect Final certificate within 10 Owner pays per Contractor right to
Simple / business days schedule 1 claim if no timely
Housing timeframe certificate issued

NIGERIA – PAYMENT & CERTIFICATION CLAUSES

1. NIA – Standard Form of Building Contract Nigeria (SFBCN)
While the full clauses are not publicly posted, scholarly texts and internal educational sources outline the
following:
 Interim Certificate: At regular intervals stated in the contract appendix (typically monthly), the
Architect is required to issue interim certificates specifying amounts due to the contractor based on
valuations prepared by the Quantity Surveyor. These valuations include work executed and
qualified materials delivered to or near site.
 Delayed Payment: If the Employer fails to pay within the period specified in the contract (usually
28 days), the contractor is entitled to additional payments—potentially in the form of interest,
penalties, or rights to suspend work.
 Off-site Materials: With approval, payment can be certified for significant off-site materials when
storage on-site is impractical. Conditions such as adequate insurance, protection, and ownership
proof must be met.
 Retention: A portion is retained from each payment. Upon practical completion, a certificate is
issued for half of the retention. The final half is released upon completion of defects correction
or expiry of the Defects Liability Period, confirmed via a separate certificate.
 Final Certificate: States all previous payments, the adjusted contract sum, and the balance due (or
refundable). Unless disputed within the timeframe or under specific exceptions (e.g., fraud or latent
defects), this certificate is conclusive.
2. BPP – Bureau of Public Procurement Standard Bidding Documents (Works / Small Works)
Although full contract texts are not publicly accessible, procurement guidelines and manuals provide the
following insights:
 Terms of Payment: The contract price and any pre-agreed advance must be paid in accordance
with the payment schedule in the agreement. Payment must occur within 60 days of goods/services
acceptance or invoice submission, whichever is applicable.
 Certification Requirement: Payments must be certified by the appointed supervising consultant,
procurement officer, or relevant authority. Certification typically confirms milestone completion,
quantity compliance, and quality control.
 Delayed Payment: Delays may entitle the contractor to interest or administrative claims, as
governed by the 2007 Public Procurement Act.
3. NIQS / ARCON / ACA – Standard Consultancy and Valuation Agreements
These apply primarily to professional services (e.g., architectural, quantity surveying, engineering):
 Interim Payment Certificates: Issued periodically by the consultant or architect based on agreed
fee stages tied to design progress, milestone delivery, or percentage of construction costs.
 Final Invoice: A concluding invoice is prepared at the end of the service period or project,
reflecting total fees earned.
 Retention: Retentions are rare in consultancy agreements. Most payments follow a clean fee-for-
service model without withholding unless specified.
 Certification Basis: Payment is typically triggered by completion of discrete professional tasks
and submission of deliverables, with invoicing and approval required.
Summary Table
Document Certifier Mechanism Payment Timing /
Penalty
NIA SFBCN Architect Interim certificates at fixed Contractor entitled to
intervals; final certificate post- extra payment for late
completion release
BPP SBD Procuring Milestone-linked certification Payment due within ~60
(Works/Small Authority / on delivery or task completion days; delays may incur
Works) Consultant penalty
NIQS / ARCON Architect / Certification tied to fee stages Paid per agreement
Consultancy Forms Consultant or milestone deliverables terms; no retention
typically used

SOUTH AFRICA – PAYMENT & CERTIFICATION CLAUSES

1. JBCC (Joint Building Contracts Committee)
Principal Building Agreement (PBA) & Minor Works Agreement (MWA)
 Payment Certificate (Clause 25):
The Principal Agent issues interim or final payment certificates at agreed intervals, certifying
amounts due for work executed and materials on-site or approved for off-site storage (values
include security adjustments, cost fluctuations, taxes, interest)
 Recovery Statement:
Each certificate must be accompanied by a recovery statement, detailing amounts due to the
contractor or employer, including penalties, interest, advances, or recoveries
 Non-conclusiveness of Interim Certificates:
Interim certificates are not conclusive evidence that work or materials comply with contract terms
 Final Payment Certificate (Clause 25.9–25.13):
 The Principal Agent must certify the full value of the final account—including adjustments. The
employer must pay within 14 calendar days of the certificate issue date; the contractor must pay
any amount due to the employer within 21 calendar days
 Delayed or Missing Certificates and Non-Payment:
If the agent fails to issue a payment certificate or the employer fails to pay the certified amount, the
contractor may, after issuing 5 working days’ notice, suspend the works, enforce a lien, or call up
the payment guarantee
 Security and Retention:
Standard retention of 10% applies, reducing to 2.5% at practical completion and zero in the final
certificate, provided guarantees are in place as specified in contract data.
2. SAICE – GCC 2010 / 2015 (General Conditions of Contract)
 Payment Certificate (Clause 6):
The Engineer issues interim payment certificates for work executed and materials, with payment
due in accordance with certificates issued. Late payment may entitle the contractor to suspension
rights and cost entitlements under Clause 4.2.1 of GCC 2010 Dissatisfaction Procedure (Clauses
6.10 & 10.1):
The contractor has 28 days to submit a claim for dissatisfaction with a payment certificate or other
evaluation decisions; failure to comply bars contractual claims or extension of time
 Payment Adjustments (Clause 6.8):
Price adjustments may apply due to changes in legislation during procurement or execution (e.g.,
new taxes or regulations), and must be determined by the Engineer within specified timelines
Summary Table
Form Certifier Key Certificate Provisions Payment Timing / Penalty
JBCC Principal Certificates of interim/final work Employer pays within 14 days;
PBA / Agent and off-site materials; recovery contractor pays employer within 21
MWA statements; non-conclusiveness of days; suspension/lien rights apply
interim
SAICE Engineer Interim certificate system; Employer pays per certificate;
GCC dissatisfaction claims; triggered dissatisfaction/time-bar if no timely
2010/15 suspension rights claim; contractor may suspend if
unpaid

MALAYSIA – PAYMENT & CERTIFICATION CLAUSES (PAM 2006 / 2018)

Clause 30 – Certificates and Payment (PAM Contracts 2006 & 2018)
Clause 30.1 – Interim Payment Applications & Certificate Issuance
 The Contractor must submit a payment application at the Interim Claim Interval (as stated in
the appendix; typically monthly) with complete details and supporting documentation to both the
Architect (and the QS if specified).
 Upon receipt, the Quantity Surveyor values the work; within 21 days, the Architect issues an
Interim Certificate to the Employer, copying the Contractor.
 If the Contractor fails to submit the application on time, they are deemed to have waived the
entitlement to that period’s payment. The Architect may, at their discretion, choose whether to issue
an Interim Certificate in such cases.
Clause 30.2 – Calculation of Amount Due
 The amount certified includes:
o Value of Works properly executed,
o Plus a percentage of goods/materials delivered off-site but ready for use,
o Less retention and previously certified interim payments.
 These goods/materials must meet contract specifications, be properly stored, insured, not
prematurely delivered, and intended for permanent works.
  Formula typically expressed as:
Amount = Value of Completed Work + % of Goods on Site – Retention – Previous Payments
Clause 30.3 – Correction of Errors
 The Architect may correct clerical, typographical, or computational errors.
 Material valuation errors cannot be amended in that certificate but can be adjusted in subsequent
Interim Certificates.
Clause 30.4 – Employer’s Right of Set-off
 The Employer may set off sums related to specified contract breaches (e.g., defects, delays) from
amounts due, but must:
o Issue written notice at least 28 days before deduction,
o Permit the Contractor to dispute within 21 days,
o Allow unresolved matters to be referred to adjudication.
 No deduction permitted unless mutually agreed or an adjudicator rules it justified.
Clause 30.5 / 30.6 – Retention Fund
 Employer retains a contractually defined percentage on interim payments.
 Retention fund may be structured as a limit (cap) (PAM 2006) or a fixed percentage (PAM 2018),
defined in the appendix.
 The fund belongs beneficially to the Contractor but is held as security for performance.
Clause 30.7 / 30.17 – Remedies for Non-payment
 If the Employer fails to honour certified interim payment within the Honouring Period (usually
30 days), the Contractor may:
o Issue suspension notice and suspend work,
o Charge interest on unpaid amounts,
o Invoke rights under relevant contract provisions for employer recourse.

Summary Table
Clause Key Provision
30.1 Contractor submits payment application; Architect issues Interim Certificate within 21
days
30.2 Amount due = work done + materials – retention – prior payments
30.3 Correct clerical errors only; valuation errors adjusted later
30.4 Employer can set off with notice; Contractor may adjudicate disputes
30.5 / 30.6 Retention held as per contract appendix (cap or fixed %)
30.7 / 30.17 Contractor can suspend, claim interest if payment not made within Honouring Period

HONG KONG – PAYMENT & CERTIFICATION CLAUSES

1. HKIA/HKIS/HKIE – Private Sector Standard Form of Building Contract
Based on the 2005/2006 RICS (HK) editions, these private contracts include:
 Interim Payment Certificates:
o Issued by the Architect (sometimes with QS input) on monthly intervals specified in the
contract appendix.
o Certificates state the amount due for work completed and approved materials, less retention
and previous payments.
 Certification Process & Timing:
o Contractor submits valuation with supporting documents ahead of the scheduled certificate
date.
o The Architect reviews and issues the certificate within a customary 10–14-day timeframe
after receipt of valuation.
  Retention & Off-site Materials:
o Standard retention is typically 5–10%, released in stages (often 50% at practical
completion, balance after defects rectification).
o Certificates may include off-site stored materials if appropriately insured and accepted.
 Non-conclusiveness of Interim Certificates:
o Interim certificates are not conclusive evidence of work compliance or entitlement—they
may be reviewed in final account determination.
 Final Certificate:
o Issued after defects liability period (DLP) ends and final valuations are agreed.
o Certifies final contract sum, previously paid sums, retention release, and balance due—or
refundable amount.

2. Hong Kong Government General Conditions of Contract (GCC)

As used by the Hong Kong SAR Government for public sector projects:
 Certification by Engineer:
o The Engineer (appointed by the Employer) reviews and issues Progress and Final
Payment Certificates for works executed and materials used.
o Certificates align with legal principles similar to SAICE or JBCC forms.
 Payment Timing:
o Employer is obligated to pay certified amounts within a specified period (e.g., 28 days or
contract-specified timeframe) following issuance.
 Set-offs and Deductions:
o The Government may withhold or deduct from payments for contractual non-compliance,
delays, or defects, subject to formal notice and dispute procedures.
 Retention & Final Account:
o Provisions include retention release and final account reconciliation after DLP.
o The final certificate is usually deemed binding, unless procedural defects or latent defects
are validly raised.

Summary Table
Contract Form Certifier Certificates Issued Payment Retention / Other
Timing Features
HKIA/HKIS Architect Interim & Final Typically 5–10% retention; staged
Private Contract (with QS) Certificates within 10–14 release; off-site materials
days allowed
Government GCC Engineer Progress & Final Payment per Retention release after
(GOSR) Payment Certificates clause schedule DLP; contractual set-off
rights

GERMANY – VOB/B Payment & Certification Provisions

16 VOB/B – Payments and Payment Deadlines
1. Entitlement to Progress Payments (Abschlagszahlungen)
 A contractor is entitled to receive progress payments calculated based on the value of work
completed in line with the contract, including properly delivered but uninstalled materials (§ 16 (1)
No. 1 VOB/B)
 These payments are due 21 calendar days after the client receives a practicably detailed interim
invoice or billing statement (“prüfbare Rechnung”) (§ 16 (1) No. 3 VOB/B)
  Annual default interest is automatically triggered without reminder if payment is not made within
30 days (§ 16 (2) VOB/B)
2. Final Payment (Schlussrechnung)
 The final invoice becomes due without delay, and at the latest within 30 days after receipt, even if
submitted in multiple installments, except in complex cases where up to 60 days may be
contractually agreed (§ 16 (3) No. 1 VOB/B)
3. Limitation on Contractor Claims
 Under § 16 (3) No. 2, if a contractor accepts and pays the final invoice without reservation after
formal notification, they generally forfeit the right to make further claims—unless a written
reservation (Vorbehalt) is submitted within 28 days of notification, with justification shortly after
(§ 16 (3) VOB/B)

Summary Table – VOB/B Payment Rules

Provision What It Covers Timing / Requirement
Progress Payments Value of executed work and Due 21 days after validated invoice; no
eligible materials reminder needed
Payment Default Late or missing payments Automatic default after 30 days; interest
applies
Final Invoice Full project accounting Due within 30 days (or up to 60 by
(Schlussrechnung) agreement)
Contractor Claims Loss of further claims unless Reservation within 28 days +
Limitation reservation submitted justification thereafter required

KENYA – PAYMENT & CERTIFICATION CLAUSES (FIDIC-Based Public Works Contract)

Clause 60 – Certificates and Payments (adapted from FIDIC’s Clause 14)
Interim Payment Certificates
 Application Submission: At intervals stated in the contract (typically monthly), the Contractor
submits a Statement of the amount due, with supporting documents, to the Project Manager /
Engineer.
 Prerequisites: Statement must be submitted on time, and performance securities must be in place
before certification.
 Issuance: The Engineer issues an Interim Payment Certificate reflecting the "fairly determined"
certified amount for completed work, off-site materials included, within 28 days of receipt of the
Statement (Subject to FIDIC Sub-Clause 14.6 principles)
Payment Timeline and Delay Remedies
 Employer Payment Obligation: Employer must pay the certified amount within 56 days from
receipt of the Statement. Delay triggers entitlement to financing charges (interest) and potentially
right to suspend works under FIDIC Sub-Clause 14.7 / 14.8
 Contractor Remedies: In case of non-payment, the Contractor may suspend or terminate the
contract after giving required notice.
Minor Alterations & Withholding
 The Engineer may withhold certification for defective or non-compliant work, or if performance
obligations are unmet.
 Certification may include deductions for employer claims or costs to rectify issues.
Final Payment and Final Certificate
 Final Statement: Within 56 days of the Performance Certificate, the Contractor submits a Draft
Final Statement and signed discharge forms, detailing amounts considered due under or in
connection with the contract
  Final Certificate Issuance: The Engineer issues the Final Payment Certificate within 28 days of
receiving the Final Statement and discharge, certifying amounts due or owed by either party
 Employer Payment: Employer must pay the certified final amount within 56 days of Employer’s
receipt of Final Payment Certificate; interest applies to late payment.
Cessation of Employer Liability
 After the Final Payment Certificate is issued, the Employer’s liability is deemed ended except for
matters expressly raised in claims or certain exceptions (e.g. fraud) as recorded in the Final
Statement/Statement at Completion

Summary Table
Provision What It Covers Timing / Requirement
Interim Certificate Certified amount for work done and Engineer issues within 28 days of
off-site materials Statement
Payment by Payment due within 56 days after Entitles Contractor to interest &
Employer Statement submission suspension
Final Statement Full summary of payments due, Submitted within 56 days of
including claims Performance Certificate
Final Payment Certified final balance due between Issued within 28 days after
Certificate parties Statement/discharge
Final Payment Employer must pay within 56 days of Financing charges apply on late
Obligation final certificate issuance payment

GHANA – PAYMENT & CERTIFICATION CLAUSES

Public Works Contract (adapted FIDIC)
Derived from FIDIC’s Clause 14, these provisions are commonly integrated into Ghanaian public sector
procurement templates such as the PPA Standard Tender Documents and Contract Administration Manuals.
Clause 14 – Contract Price and Payment
Interim Payment Certificates (Clause 14.6)
 Condition for Certification: No payment certificate is issued until the Employer has received and
approved the Performance Security.
 Engineer’s Role: Within 28 days of receiving the Contractor’s Statement and supporting
documents, the Engineer must issue an Interim Payment Certificate, stating the amount fairly
determined as due.
 Correction and Adjustment: The Engineer may correct or modify previous certificates but interim
certificates are not endorsements of work quality.
Employer Payment Obligations (Clause 14.7)
 Advance Payment: If applicable, paid within 42 days after Letter of Acceptance or 21 days after
performance security is approved.
 Interim Payments: Employer must pay the amount within 56 days after the Engineer receives the
Contractor’s Statement.
 Final Payments: Employer must also pay final certified sums within 56 days after receiving the
Final Payment Certificate.
Delay Remedies — Financing Charges (Clause 14.8)
 If payment is delayed beyond the due date, the Contractor is entitled to financing charges (interest)
compounded monthly.
 The interest rate is typically 3% above the central bank’s discount rate unless defined differently
in contract data.
 These charges are payable without further notice or approval.
Payment of Retention (Clause 14.9)
 Once works are certified as taken over, half of retention money is released; final half after the
Defects Notification Period.
 If sections are taken over, proportional retention release applies. Engineer may withhold retention
for outstanding remedial work.
Statement at Completion (Clause 14.10)
 Within 84 days of receiving the Taking-Over Certificate, the Contractor submits a Statement at
Completion, showing all completed works, additional sums claimed, and estimates of future
entitlements.
 The Engineer then processes this using interim payment certification procedures.
Final Payment Certificate (Clauses 14.11–14.13)
 Within 56 days of receiving the Performance Certificate, Contractor submits a Draft Final
Statement and signed discharge.
 Within 28 days, the Engineer issues the Final Payment Certificate, stating the final amount due
or payable, including all prior payments and adjustments.
 If no draft final statement is submitted within 28 days of being requested, the Engineer issues the
Final Certificate for the amount they fairly determine to be due.
 The contract liability is deemed to end after this certificate is issued, except for matters recorded in
the final statement or arising from fraud/default.
Summary Table
Clause Function Timing / Provision
14.6 Interim Engineer certifies work done as per Within 28 days of Statement receipt
Certificate contractor’s statement
14.7 Payment by Employer pays certified amounts Within 56 days after Statement receipt
Employer
14.8 Delayed Contractor may charge interest Monthly compounded, 3% above central
Payment bank rate
14.9 Retention Pay- Retention release at taking over and 50% at taking-over, rest after DNP,
out defects end subject to adjustments
14.10 Statement at Contractor submits full statement of Within 84 days from Taking-Over
Completion work and claims Certificate
14.11–14.13 Final Engineer certifies final balance due Final Certificate issued within 28 days
Certificate of Draft Final Statement
Comparative Table: Impact of Certificate & Payment Clauses on Professional Stakeholders
Contract Clients / Architects / Contractors Quantity Government /
Form / Employers Engineers (Cashflow / Surveyors PPP Projects
Country (Overpayment (Authority vs Claims) (Valuation (Compliance /
Risk) Legal Exposure) Role) Transparency)
FIDIC Certified payment Must act Rights to Supports Strong donor-
Red Book prevents impartially; interim certifier with aligned
(Global) overpayment and exposed to payment and interim compliance;
right to withhold liability for interest and valuations used in global
under strict terms delayed or structured and BOQ PPPs
incorrect claim paths updates
certification
JCT SBC Protected via Pay High legal Can suspend Shares Used
(UK) Less Notices and exposure if works and valuation selectively in
clear schedules timelines missed can issue with PPPs and not
and full notices if architect and fully digitised
responsibility for employer supports or centralised
certificates defaults certification
logic
NEC3/4 Weekly payment Project Manager Early Involved in Strong in
ECC (UK) process limits led certification warnings, target cost performance-
large and risk of compensation and based public
overpayments contractual events pain/gain sector
conflict if also support valuation contracts
employer’s rep cashflow
certainty
JBCC Retention and Principal Agent Can suspend Collaborates Strong state-
(South payment cycle issues certs and for non- on level
Africa) regulated and liable for under- payment and valuations enforcement in
client can suspend /over-certification clear lien and recovery housing &
with cause provisions statements infra
CCDC 2 Architect certifies Architect's Statutory QS plays Accepted in
(Canada) and delay neutrality often prompt minor role public
triggers interest, questioned and payment and and mostly procurement
avoids premature legally liable lien rights architect/CM but less
payout enforced common for
PPPs
PAM Retention Contract Entitled to Co-develop PAM is used
2006/2018 structure and Administrator interest on valuation in public-
(Malaysia) staged payments must be impartial late payments with private
protect owners and some risk and Architect housing
exposure progress- initiatives
based claims
CPWD Fixed milestone Executive Can claim Limited Government-
GCC payments & final Engineers certify advances, standalone dominant; fits
(India) payment against and limited escalation QS role central PWD
performance independence and payment procurement
delays model
penalised
 VOB/B Client can verify Architect/Engineer Paid after Critical in Mandated for
(Germany) before final liable for early or acceptance interim & all public
payment and wrongful and strong final billings works and
payment tied to certification legal claim (Aufmaß) highly audited
acceptance for certified
value
NIA Architect’s Holds exclusive Right to Conducts Embedded in
SFBCN certificate authority and interim & valuations national works
(Nigeria) required and final exposed to final payment and feeds contract policy
cert is conclusive disputes or and retention into
unless fraud negligence claims handled with Architect’s
trust clause cert
GCC – Certification Engineer acts as Clear claim Prepares Used for donor
Kenya / required before certifier and processes and valuation & funded public
Ghana payment and impartiality payment tracks works with
(FIDIC- retention assumed but timing and completion strict timelines
adapted) managed debated interest milestones
transparently applicable

Comparative Table: Impact of Certificate & Payment Clauses on Professional Stakeholders

Contract Clients/Employers Architects Contractors Quantity Government

Document Surveyors (PPP
(QS) Projects)
NIA SFBCN Protection via Central Structured Integral to Less direct use
architect-issued authority in cash flow interim in PPPs but
certificates and certifying through valuation promotes
retention. Risk of payments. interim process. transparency
penalty if payments Legal certificates. Collaboration in valuation
delayed. exposure for Can claim with architect and payment
errors or interest or ensures release
delays in suspend work accurate milestones.
certification. if payment is financial
late. representation.
BPP SBD Provides structured Limited direct Right to Valuation- Enhances
(Works/Small timelines for role unless certification- based compliance,
Works) disbursement. appointed based certification ensures public
Protects against consultant. payments. Can duties. Liaises fund
unjustified Minimal legal invoke with accountability,
contractor claims. exposure administrative procurement supports anti-
under public redress for officers or corruption
procurement delayed supervising measures.
roles. payments. consultants.
NIQS/ARCON Clear deliverable- Certifies N/A – Professional In PPP
Consultancy based payments. consultancy consultants not services advisory roles,
Forms Simplifies fee stages. main works payments promotes
budgeting for Reduced risk contractors directly tied to transparent
consultancy scope. due to lack of under these tasks like documentation
retention and forms. BOQs, cost and milestone
simple estimates, etc. reporting.
payment
terms.