Construction Law/Interim Payment Certificate
QUESTION: Dear Mam
Hope you are fine and good.
My Question is that:
If Contractor submits Interim Payment Certificate(IPC) after issuance of Taking Over Certificate of the Project. Should it be accepted for payment or it should be returned and the Contractor should be asked to Submit the Statement at Completion as per Clause 14.10. ? Can Employer return the IPC on this excuse.
ANSWER: Hello, Sir,
I am good, thank you for asking :)
There is nothing in the Contract to forbid the Contractor to send Interim Payment Applications and the Engineer to issue Interim Payment Certificates after the issuance of Taking Over Certificate. In fact, only before the Taking Over the Engineer cannot be forced to issue Interim Payment Certificates with a lower value than the minimum amount stated in the Appendix to Tender - the Engineer can issue such certificates, but cannot be force to do it BEFORE the Taking Over. There are no restrictions AFTER the Taking Over.
So, the IPCs issued after the Taking Over should be accepted for payment, according to 14.7 and should not be returned, otherwise 16.1 and 16.2 can apply.
---------- FOLLOW-UP ----------
QUESTION: Thank you for earliest reply.
But as i understand (obviously not an experts understanding)
The Clause 14.10 becomes effective for submission of payment certificates after issuance of Taking Over Certificate (TOC) and the Clause 14.3 accordingly becomes ineffective as was Clause 14.10 before TOC.
I request your much valued Expert Comments please.
There is no such restriction in the Contract. Read carefully the Sub-clauses 14.3 and 14.6 bearing in mind that the Contractor in is the Defect Notification Period, after the Taking Over of the Works and there are, still, some works to be done before the Final Taking Over: you will see that nothing in 14.3 and in 14.6 forbid the Contractor to issue IPAs and the Engineer to issue IPCs. Consequently - read 14.7 keeping the same thing in mind - the Employer must pay according to 14.7.