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FIDIC Payment Procedure Presentation

The document outlines the payment procedures and timelines under the FIDIC Red Book 1999, covering Advance Payments, Interim Payments, Final Payments, and related scenarios. It details the roles of the Contractor and Engineer in submitting statements and issuing certificates, as well as the implications of disagreements on final payments. Understanding these processes is essential for Contract Managers to ensure timely and accurate payments.

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31 views9 pages

FIDIC Payment Procedure Presentation

The document outlines the payment procedures and timelines under the FIDIC Red Book 1999, covering Advance Payments, Interim Payments, Final Payments, and related scenarios. It details the roles of the Contractor and Engineer in submitting statements and issuing certificates, as well as the implications of disagreements on final payments. Understanding these processes is essential for Contract Managers to ensure timely and accurate payments.

Uploaded by

Donz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Timeline and Payment Procedure

under FIDIC Red Book 1999


Advance Payment, Interim Payments,
Final Payment, and Related Scenarios
Overview
• This presentation details the payment
procedures and timelines under the FIDIC Red
Book 1999, including:
• - Advance Payment
• - Interim Payments
• - Final Payment
• - Other Payments
• Also discussed are key definitions and
scenarios such as when the Engineer does not
agree on the Final Payment.
Advance Payment (Sub-Clause
14.2)
• • Paid after receiving Advance Payment
Guarantee.
• • Amount and currency stated in Appendix to
Tender.
• • Recovered in installments from Interim
Payments.
Interim Payments (Sub-Clauses
14.3–14.7)
• • Contractor submits monthly Statements.
• • Engineer issues Interim Payment Certificate
within 28 days (14.6).
• • Employer pays within 56 days of submission
(14.7).
• • Includes value of work, variations, materials
on-site, less previous payments.
Final Payment (Sub-Clauses 14.11–
14.13)
• • Contractor submits draft Final Statement
and discharge (14.11–14.12).
• • Engineer verifies, then issues Final Payment
Certificate within 28 days (14.13).
• • Employer pays per certified amount.
• • Final Payment discharges further financial
claims unless noted.
Clarification of Terms
• • Draft Final Payment Statement: Submitted
with supporting docs for final account.
• • Final Payment Certificate: Engineer's
certification of final amount due.
• • Interim Payment Certificate: Issued monthly
for ongoing work.
• • Discharge: Release from further claims,
unless stated.
Scenario: Engineer Disagrees on
Final Payment
• • Engineer may refuse to issue Final Payment
Certificate if not satisfied.
• • Engineer must issue Interim Payment
Certificate for amounts he considers due (Sub-
Clause 14.13).
• • This ensures Contractor is paid undisputed
amounts while issues are resolved.
Retention and Completion
Payments
• • Retention Money (14.9): Released in two
parts:
• - Half at Taking Over
• - Remainder at end of Defects Notification
Period.
• • Statement at Completion (14.10): For work
done post-Taking Over and unreleased
retention.
Conclusion
• Understanding payment processes under
FIDIC 1999 is crucial for Contract Managers.
• Timely submissions and accurate
documentation are key.
• The Engineer’s role is central in certifying and
ensuring payment integrity.

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