Civil Engineering Reference
In-Depth Information
Particulars and clause 4.8; and (iv) any sums paid in respect of an Interim Payment
Notice given after the issue of the latest Interim Certificate (whether as adjusted by
a Pay Less Notice or otherwise). Section 8.6 contains a fuller discussion of retention.
The provisions for ascertaining the gross valuation of the work carried out by the
Contractor are to be found in clauses 4.16 and 4.17.
The SBC/DB provisions
The SBC/DB provisions for ascertaining the amount of interim payments are similar
to those contained in the SBC.
The procedure for ascertaining amounts to be included in Interim Certificates is
to be found in clause 4.7. This stipulates that the amount due as an interim payment
shall be an amount equal to the Gross Valuation under clause 4.13, where Alternative
A applies (Stage Payments) or clause 4.14, where Alternative B applies (Periodic Pay-
ments), less (i) the aggregate of any amount which may be deducted and retained by
the Employer by way of retention under clauses 4.16 to 4.18; (ii) the total amount of
any advance payment due to be reimbursed to the Employer in terms of the Contract
Particulars for clause 4.6; and (iii) the amounts paid in previous Interim Payments.
The provisions for ascertaining the gross valuation of the work carried out by the
Contractor are to be found in clauses 4.13-4.15.
he NEC3 provisions
As previously discussed, the six main options in the NEC3 are essentially different
payment structures. Options A and B are priced contracts; options C and D are target
contracts; and options E and F are cost reimbursable contracts.
A detailed review of each of the NEC3 options is beyond the scope of this chapter.
However,intermsofallsixoptions,clause50.2providesthattheContractorisentitled
to be paid the 'Price for Work Done to Date' (PWDD), plus other amounts to be paid
to the Contractor, less amounts to be paid or retained from the Contractor, following
eachassessmentdate.PWDDis,however,deineddiferentlyinrespectofeachoption:
•
Option A - the total of the 'Prices' for the completed activities;
•
Option B - the quantity of completed work for each item in the Bill of Quantities
multiplied by the relevant rate;
•
Options C to F - the 'Defined Cost' that the Project Manager forecasts the Con-
tractor will have incurred before the next assessment date plus the Fee.
heotheramountsthatcouldbepaidtotheContractorcouldarisefromsuchthings
as interest in terms of clause 51.2, compensation events or secondary options (e.g.
Option X6 - Bonus for early Completion).
Amounts to be paid or retained by or retained from the Contractor depend on the
operation of clause 50.3 and the particular Secondary Options that are selected (e.g.
Option X7 - Delay Damages).
