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Construction Law/FIDIC yellow book Clause 14 [Contract Price and Payments] Sub Clause 14.5 [Pant and Materials intended for the Works]


Dear Peter,

Could you please explain me that how Sub Clause 14.5 [Pant and Materials intended for the Works] applies in context to Sub-Clause 14.3[Application for the Interim Payment Certificates.

In paragraph (e)of Sub-Clause 14.3[Application for the Interim Payment Certificates, it states that "any amount to be added and deducted for Plant and Materials in accordance with Sub Clause 14.5 [Pant and Materials intended for the Works]"

How it works in the concept of Interim payment certification?


Dear Rajan,

I am not sure that I understand your question.  When materials arrive on site, they are included in the IPC as materials on site.  Once they are included in the Works, they are deducted from the item materials on site and included in the relevant bill item in the main body of the IPC.  The easiest way to operate this clause is to do a monthly stock take of materials on site. The value for the IPC = opening stock at the start of the month - closing stock at the end of the month.  In the early stage, the value will be positive and then negative towards the end of the contract.  

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Peter M. Elliott


First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol before submitting a question.


Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

B Sc(Hons) in Civil Engineering

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