Construction Law/Material at site


We are working in re measurable contract ,there is allowance in payment clause to pay 75% of  the C.I.F value of material delivered at site subject to further 10%  retention .

My question : what is the meaning of "subject to further 10% retention" ,is the 75% value shall reduced by deducting of 10% (i.e. the net value will be equal to 67.5 % ).

what about the general 10% retention applied to all other estimated IPC  due amount ,it will applicable to to 67.5 as well ,and same shall be applied to recover the advance payment.

Many Thanks,


Dear Ahmad,
Thank you for your question.
As I could understand from the provided information is that the Employer wants to deduct 10 percent on all payments released by him to the Contractor in this bespoke type of contract including mobilization advance payment. You have correctly understood that ultimately you are only getting 67.5 percent instead of 75 percent of secured advance. This has to be then recovered in installments as provided for in the Contract. This is the normal procedure but you have to see your contract for exact details.
The general 10percent deduction in IPC remains there except for secured advance provision as it has already been deducted with payment of the secured advance against material.

Liaqat Hayat

Construction Law

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Liaqat Hayat


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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