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Construction Law/Interim Payment Certificate


QUESTION: Clause 14.6 of the FIDIC 1999 Red Book, requires the Engineer to issue an Interim Payment Certificate to the Employer within 28 days after receiving a Statement and supporting documents from the Contractor.

However very often the supporting documents (measurements, calculations etc) are incomplete at the time of submission of the Statement to certify the full amount applied for.

My question is whether the stipulated time frame of 28 days start from day 1 of the submission of the Statement or from the date on which satisfactory supporting documents are being submitted whereby an evaluation could be carried out and certificate issued to the Employer ??

If the answer to the above is as from day 1 of the submission, then as at 28 days thereafter the Engineer is bound to issue a certificate based on the extent of supporting documents available as at that date. The amount could be much less that the application for payment. Please confirm whether this is correct.

Thanking you for your kind support.

Best Regards


ANSWER: Dear Michael,

Thank you for your question.

Suggest neither of your approach, but the K.I.S.S. one, i.e. Keep It Straight and Simple!

Just read carefully the wording of 14.6, as it says: "the Engineer shall, within 28 days after receiving a Statement and supporting documents, issue to the Employer an Interim Payment Certificate which shall state the amount which the Engineer FAIRLLY DETERMINES TO BE DUE, with supporting particulars."

As such, the Contractor includes no matter what in his Statement, the Engineer, issues an IPC, including in it ONLY what he fairly determines to be due and provides supporting particulars, indicating why he did not include some of the sums the Contractor included in his Statement.

Trust that solves your dilemma, good luck!

---------- FOLLOW-UP ----------

QUESTION: Dear Mr Florin,

thank you very much for your reply. It confirms what I was thinking being the right approach.

Unfortunately in my case the valuation of the Statement is being done by another Quantity Surveying firm, appointed by the Employer, based on which we as Engineer would issue the payment certificate. However the QS took much more that 28 days for the valuation arguing that the supporting documents were submitted well after the Statement and this being beyond the first 28 days and that it was this date that was considered as the effective date for submission of the Statement.

Of course the delays in valuation subsequently delayed the eventual payment by the Employer and the Contractor is now accordingly claiming for financing charges on late payments under Clause 14.8 as payment by the Employer was also beyond the specified time frame of 56 days as per Clause 14.7 (b).

Unfortunately the Employer is in favour of the QS's interpretation of Clause 14.6 as this is to his advantage and also due to the QS's firm being in fact one of its sister company.

My question is as to whether the QS was right in waiting for additional supporting documents which came much later than the 28 days before issuing us his valuation for certification, and whether the Contractor is or not entitled to financing charge in this present case.

Thank you very much for your time and support.


Dear Michael,

Thank you for coming back.

Again, please do read the Contract. There is a mechanism made of Sub-Clauses 14.6, 14.7 and 14.8.

As long as IPC not issued, payment is not yet due, hence, once can not invoke 14.8. The mechanism is missing a link. Hence claim on that basis is born dead.

What Contractor could do, would be to claim for Engineer's failure to issue IPC, but as long as their own documents prevented issuance of IPC, such claim would also be failed.

I trust that problems with Contractor's Statement are properly recorded to make possible demonstration of the fact that they are at the origin of the problem. If not, try making sure you gather quickly all you need.

And to answer your question, no, the QS was utterly wrong, they should read the Contract.

Trust that answer your query.

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Over 20 years of experience in the field of design, works supervision, construction, management of aid funds and technical assistance for various types of contracts implementation, including severe conflictual contractual situations leading to Claims and disputes. Claims/ Contract management, Disputes adjudication, Arbitration.

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