Construction Law/sub clause 14.10 VS 14.11 FIDIC Redbook 1999
Greetings, would you please explain to me the difference between sub clause 14.10 "Statement at Completion" and sub clause 14.11 "Application for final Payment certificate", i'm confused about them because both more or less are talking about final payment, so what is the difference? are we going to pay the contractor as per 14.10 and we will pay him again as per 14.11?
thanks in advance for your kindly cooperation.
Greetings to you, too!
The Sub-clause 14.10 refers to the Payment Application that the Contractor is issuing after the taking over of the works, where he shows the value of all the works done by the taking over and other amounts that the Contractor considers that he is entitled to. Also, the Contractor shall include an amount that he estimate that he will become entitled to (this is a forecast only, to make the Employer and the Engineer aware that it is possible that these amounts will become due to the Contractor, so that the necessary financial arrangements be done, and it is not an amount that is actually requested to be paid when the Certificate made according to the Statement at Completion will be issued and paid).
The Sub-clause 14.11 refers to things that will happen after the Engineer is issuing the Performance Certificate, at the end of the last Defect Notification Period within the Contract and after the Contractor's Documents are supplied and after the last testes on the works are made. The Sub-clause 14.11 says that after the Contractor receives the Performance Certificate stating that the Contractor fulfilled his obligations under the Contract, the Contractor shall submit the draft final statement, in which he will show the value of all the work done according to the Contract and other amounts that the Contractor considers to be entitled to.
So, in 14.10 it is about the payment at the taking over of the works, plus making the Employer and Engineer aware that other amounts will become due, and 14.11 is about the final payment. At each of them - payment following the Statement at Completion (after the Taking Over) and the payment following the Final Statement (after the Defect Notification Period) - the amounts due and not paid yet will be paid. The forecast in terms of money due, included in the statement that 14.10 refers to, is not payable at that moment, but in only indicative for future amounts that the Contractor considers that he will be entitled to.
Hope that this clarifies the issue of 14.10 and 14.11.