Payment of the contractor: the cumulative value of work done Contract value 100% completed (everything in the project has been completed) S-curve: the project gains more value with time Cumulative value of project in ¥ 50% completed (foundations + conc. elements + masonry) 25% completed (foundations + concrete elements) Handover date Project duration (time) 10% completed (foundations)

2. Client´s architects scrutinize what has been done on site If value of work done is NOT as requested in interim certificate, the architect will ask the contractor to revise his request to match what has been done on site!! Client´s architects 2. Client´s architects scrutinize what has been done on site 1. At the end of each month, the contractor sends an interim payment request to the Client´s architects Contractor Client´s bank 4. Client´s bank pays the contractor 3. If value of work done is as is requested in interim certificate, the architect will ask the Client's bank to pay the contractor

Final payment 15 days after handover Payments: 1st: 200,000 2nd: 200,000 3rd: 300,000 4th. :150,000 5th.: 100,000 Final: 50,000 1,000,000 ¥ ¥ Final: Work done:1,000,000 ¥, payment = 1,000,000 - 950,000= 50,000 ¥ Contract sum: 1,000,000 RMB 5. Work done:950,000 ¥, payment = 950,000 - 850,000= 100,000 ¥ 4. Work done:850,000 ¥, payment = 850,000 - 700,000= 150,000 ¥ 3. Work done:700,000 ¥, payment = 700,000 - 400,000= 300,000 ¥ Final payment 15 days after handover 2. Work done:400,000 ¥, payment = 400,000 - 200,000= 200,000 ¥ Project hand over 1. Work done:200,000 ¥, payment = 200,000 ¥ Time 1st Month 3rd Month 5th Month 2nd Month 4th Month PAYMENT OF THE CONTRACTOR ( Cumulative value of work done – cum. payments = payment for period) eml@via.dk