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Construction Law/Advance payment recovery

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Question
Hi Alina,

Is advance payment recovery shown on the valuation page or should it be on the certificate page? Or is it correct principle to show it on the valuation summary rather than on the certificate only?

Kind Regards

Answer
Hi,
In the Contract there is no provision regarding the form of the Certificate, nor of the Statement. It is only said, in 14.3: "The Contractor shall submit a Statement in six copies to the Engineer after the end of each month, in a form approved by the Engineer, showing in detail the amounts to which the Contractor considers himself to be entitled...". Then, it is said, in the same sub-clause 14.3, that the Statement will contain..."(d) any amounts to be added and deducted for the advance payment and repayments in accordance with Sub-Clause 14.2 [Advance Payment]...".
So, no foreseen format.
In practice, I've seen in the Summary Sheet of the IPC (that contain all the amounts foreseen in 14.3 (a) to (g)) the amount related to the recovered advance payment. In some cases, the Certificate itself is a sheet of paper signed by the authorized person from the Engineer, stating only the final amount to be paid, and having as annex the above mentioned Summary Sheet of the IPC .
Anyway, when calculating the amount to be paid, all the elements mentioned in 14.3 (a) to (g) should be shown - including, therefore, the amount related to the recovery of the advance payment.
Hope it helps.
Best regards,
Alina

Construction Law

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Alina Valentina Oprea

Expertise

I can answer to questions regarding FIDIC 1999 contracts, including practical use of these conditions of contract, as well as to questions regarding dispute boards, both from theoretical and practical point of view. I cannot answer to questions related to other kind of contracts or to procurement process, except to some (limited) extent.

Experience

Implementation of works contracts (FIDIC 1999) financed by different financial institutions, including European Union; claims and disputes; dispute boards See more on www.alinaoprea.com

Organizations
Dispute Resolution Board Foundation

Publications
see http://alinaoprea.com/publications/ ; DRBF Forum Newsletter; Drumuri si Poduri; Revista Constructiilor; SIDiR Newsletter

Education/Credentials
Graduated the University of Civil Engineering Bucharest, Faculty of Railways, Roads and Bridges (1985-1990); Trained under Mr. Gwyn Owen’s pupilage program for arbitrators/adjudicators under FIDIC mentoring program (2006 – 2007)

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