English for Construction Engineering Management，建筑工程专业英语 授课教师：赖小东 email: tylerlai@126.com. Cell#13627005955 江西财经大学旅游与城市管理学院工程管理系

Lecture 8 Payments and Final Accounts 1. Construction Payments Introduction 2.Advance Payments 3. Interim（临时） Payments 4. Interim Payment Certificates 5. Final Account/Payment 6. Retention Money保留资金

Payments and Final Accounts 1. Construction Payments Introduction In construction contracts payments may be classified into three categories: Advance payments Interim payments Final payments Account最后支付

Payments and Final Accounts 2. Advance Payments An advance payment, or simply an advance, is the part of a contractually due sum that is paid in advance, while the balance will only follow after completion of the works. Advance payments are typically between 15% and 20% of the contract amount, but this depends on the nature of the works.

Payments and Final Accounts 3. Interim Payments Generally the interim payment will occur at pre-determined intervals in the contract. Interim valuations can be called stage payments or milestone payments paid at specific times when the contractor achieves the various stages of completion Under FIDIC contracts the commonly used document to value interim payments are the bill of quantities, and the schedule of rates.

Payments and Final Accounts 4.Interim Payment Certificates Elements of “Interim payment certificates” means a payment certificate issued under the clause “contract Price and payment” FIDIC Sub-Clause 14.6 stipulates that the engineer shall make the interim valuation and to issue within 28 days after receiving a statement/application and supporting documents from contractor.

Payments and Final Accounts 5. Final Account/Payment In basic terms of construction contracts, a final account is the agreed statement of the amount of money to be paid at the end of a building contract by the employer to the contractor. The final account based on the following documents: The form of contract Original priced bill of quantities Variations Drawings Agreed contractor’s claims

Payments and Final Accounts 6. Retention Money Retention money is amount retained by the employer for any defective works that may occur during the construction period and the defects liability period. typically 5%～10% of the total contract price the employer to release the retention as stated in the contract, once the defects are rectified to the satisfaction of the engineer.

Any Questions?