Interim Payment Certificate (IPC)

Interim payments occur through out the construction period. The primary
mechanism by which the contractor gets paid for the work carried out. This
becomes the cash how between the employees at the pre - determined intervals.
(monthly)

These payments are determined by the value of work carried out by the
contractor during this period. In general this may call monthly valuations.
Sometimes the interim valuations can be called stage payments or milestone
payments paid at specific times when the contractor achieves the various stages
of completion ( eg : substructure, ground floor level, wall & floor, finishes of
ground floor, 1st floor )

Works (as billed) for purpose of payments,

1. Measured work including preliminaries.

2. The value of variations & extra work.
3. Value of nominated subcontractors work.
4. Fluctuation it any (price escalation)
5. Unfixed material & goods on site.
6. The retention percentage

Retention money - Deduct 10% of work done from each IPC and
the limit of retention is 5% (5% of the contract sum)
Retention money is kept to reduce the risk of any defects done by
the contractor.

In preparation of monthly certificate the above are to be adjusted accordingly

Consultant / Engineer to the contract issue a certificate as per the contract to the
contractor. (within the duration normally 21 days)

Contractor give the bills & supporting documents & to the

Consultant / Engineer. Then the Engineer / Consultant should
prepare the IPC within 21days.Once the IPC is made employees
should pay the contractor within 14days.

SBD 2 section II 14.5

 Interim Payment Certificate No : 04th sep 2011

Project :
Client :
Contractor :
Contractor sum : Rs (excluding VAT)
Maximum retension money : Rs Date of commencement .
(5% of the contract sum)
Mobilization Advance received : Rs Date of completion ..

1. Value of work done upto Rs.

2. Value of variations Rs.
3. Value of extra work Rs.
4. Material of site Rs.
Add sub total

5. Fluctuations Rs.

sub total

Deductions

6. Advance recovery (25% of sub total II) Rs. ( )

7. Retention Rs. ( )
8. Previous payments Rs. ( )

9. Balance due to the contractor Rs.

Rupees .. is due to the contractor in respect of Interim payment

certificate no.

Chief Quantity surveyor Principle Architect
 Proposed office building for ICBT at Bambalapitiya

The contractor submitted Interim valuation No.6 to the consultant M/s

Maheesha Associates. The contract sum is Rs.134,989,554.40
(excl VAT) Advance received Rs. 26,997,910.88
The total recommended value of work done up to 20 th august 2011 is Rs.
75,768,157.00
Total variation amount is Rs. 16,370,959.22
Recommended extra work Rs. 2,934,529.58
Material at site is Rs. 3,230,443.26
The previous recommended payment Rs. 63,259,140.71
This project is entered 2.5% discount for original contract items by the contractor.
Assume that you are the project Qs & prepare PC No.6

Interim payment certificate No.6 04th sep 2011

Project : Proposed office building for ICBT Bambalapitiya

Client : ICBT Bambalapitiya
Contractor :
Contract sum : Rs. 134,989,554.40
Max. retension money : Rs. 6,749,477.72
Mobilization adv. received : Rs. 26,997,910.88

1.Value of work done up to 20th august 2011 Rs. 75,768,157.00

Discount 2.5% Rs. 73,873,953.08
2. Value of variations Rs. 16,370,959.22
3. Value of extra work Rs. 2,934,529.58
4. Material at site (80%) Rs. 2,584,354.61
Can give discount to material at site as well
Because it is in original contract
Sub total Rs. 95,763,769.49
Add
(Discount 2.5% of work done)
5. Advance recovery Rs.( 23,940,949.12)
6. Retention (limit 5% of contract sum) Rs.( 6,749,477.72)
7. Previous payment Rs.( 63,259,140.71)

Balance due to the contractor Rs. 1,814,228.94

Rupees one million eight hundred and fourteen thousand and two hundred and
twenty eight and ninety four cents is due to the contractor in respect of interim
payment certificate No.6

..
Chief Quantity Surveyor Principal Architect
 Key Issues in Interim and final valuations

Since the quantities set out in the BOQ ( CTAD/SBD/02) condition of contact
clause 14.1)

A property develop is getting the instruction from their consultants

M/s Grasshopper Ltd. to release due payment to the contraction M/s Bull
Builders Ltd.
Initial contract sum is Rs. 25 million (ex. VAT)
Construction period 1 year
At the 5th month certified value of work done by the Grasshoppers Ltd. is Rs.
13,250,000.00 inclusive of variation and extra work.
The previous payment made to the contract M/s Bull builders is Rs. 8,524,500.00
Mobilization paid according to the ICTAD condition of contract
(ICTAD/SBD/02/section I 36.1 page 28)
Calculate the due sum for the Bull builders with respect of 5th valuation submitted
on 1st September 2011.
Proposed class room block for ICBT campus Mt.Lavinia assuming consultant
project Qs and comment about the due payment as per ICTAD