The payment cycle
If payment is late, the Contractor is entitled to financing charges under Sub-Clause 14.8.
What goes in the Statement
Sub-Clause 14.3 lists the items in order, and certifiers expect to see them that way:
- (a) The value of the work executed and the Contractor’s Documents produced to the end of the month, including Variations
- (b) Amounts for changes in legislation and in cost (Sub-Clauses 13.7 and 13.8)
- (c) The retention deduction, at the rate and up to the limit in the Appendix to Tender
- (d) The advance payment and its repayments
- (e) Plant and Materials intended for the Works (Sub-Clause 14.5)
- (f) Any other additions or deductions due, including agreed claims
- (g) The amounts certified in all previous Payment Certificates, deducted
Retention and advance repayment
Retention is deducted at the percentage in the Appendix to Tender until it reaches the limit. Half is released when the Taking-Over Certificate is issued and the rest after the defects notification period (Sub-Clause 14.9). Under Sub-Clause 14.2, repayment of the advance starts in the certificate where certified payments pass 10% of the Accepted Contract Amount less Provisional Sums, at 25% of each certificate, unless the Appendix to Tender sets other figures.
Materials on site
Under Sub-Clause 14.5 the Statement can include 80% of the cost of the Plant and Materials listed in the Appendix to Tender once they are delivered to the Site and properly stored, when you keep records and evidence of their cost. Keep invoices, delivery notes, storage and insurance evidence for every item.
VAT and tax invoices
In the UAE the tax invoice adds VAT at 5% to the certified amount, with your tax registration number. Other GCC countries set their own VAT rules, so follow the law where the project is.
We submit Interim Payment Application No. 9 for the period ending 31 August 2026 under Sub-Clause 14.3. It includes AED 640,000 for Variation Orders 11 to 14 and AED 212,000 for Plant and Materials on Site, at 80% of their cost under Sub-Clause 14.5. After retention, advance repayment and the amounts previously certified, the net amount due is AED 1,148,300 excluding VAT. The measurement records, the material invoices and the monthly progress report are attached.
How to avoid cuts and delays
- Agree the measurement with the Engineer’s staff before the period closes (Sub-Clause 12.1)
- Include only Variations the Engineer has instructed
- Keep the Performance Security and the advance payment guarantee valid (Sub-Clauses 4.2 and 14.2)
- Deduct the amounts previously certified, not the amounts applied for
- Send on time with every attachment: an incomplete Statement gives the Engineer a reason to defer