Construction Law/Advance payment

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Question
In our Contract, there is a provision of payment of interest on IPC if its payment is not made within 70 days after the submission of IPA by the contractor.
Contractor's assertion is that any payment other than final payment is Interim Payment Certificate and hence the payment of Mobilization Advance is also an IPC and since the payment of Mobilization Advance was released after 70 days, they are entitled for interest on the same.
Can the Mobilization Advance be treated as an IPC ?

Answer
Dear Satish Kumar,
Thank you for your question.
Answering specifically to your question, i am of the opinion that the clause for the non-payment of the mobilisation advance is the same as the one for non-payment of the IPC. Now, the request for the mobilisation advance should have been presented as the first IPC.  If this has not been done this way, it is a problem. Anyway Mobilization advance payment is an IPC payment as explained.
Regards,
Liaqat Hayat  

Construction Law

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Liaqat Hayat

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I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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