FIDIC Training Contract Price & Payment

international federation of national associations of independent consulting Engineers
FIDIC Training Riyadh 1020 BTA - Dr. Moustafa Ismail March 2018 LEC- V 1
FIDIC Forms of Contracts
Training Course:
Saudi Arabian Council of Engineers
March 2018
LECTURE 07B
‫عليكن‬ ‫السالم‬‫وبركاته‬ ‫هللا‬ ‫ورحوة‬
2018
.

• Contact details
• moustafa1_ismail@yahoo.com
• https://www.linkedin.com/in/dr-moustafa-ismail-cfcc-mciob-
rmp-pmp-arics-93798a16/
• https://twitter.com/moustafaabudief
• https://www.slideshare.net/moustafismail
• 00966508297971- +96598922125-Kuwait
March 2018FIDIC Training Riyadh 1020 BTA - Dr. Moustafa Ismail March 2018 LEC- V 2

Contract Price & Payment
• Cl.14 Contract Price
o Measured and will vary – Red Book
o Fixed Lump Sum – Yellow Book
o Fixed Lump Sum – Silver Book
o Lump Sum or Re-measure – Green Book
FIDIC Training Riyadh 1020 BTA - Dr. Moustafa Ismail March 2018 LEC- V 3March 2018

Advance Payment
• Cl.14.2 Advance payment
o Interest free loan for mobilisation
• Guarantee
• Application Cl.14.3
• Performance Security – approved by Employer
o Repayment of advance payment
• Commence after when certificates >10%
• Deductions 25% of each Certificate

Interim Payment
• Cl.14.3 Application
o 6 copies
o In a form approved (Cl.4.9)
o Cl.4.21
o List of items (a) – (g)
o Note : Cl.20 items included

Interim Payment
• Cl.14.4 Schedule of payments:
o Payment dates not recommended
o Engineer determination Cl.3.5
o Cross guarantees
o Milestones preferred

Interim Payment
• Cl.14.6 Issue of IPC
o Engineer determines FAIRLY
o IPC SHALL not be withheld
• Cl.14.7 Payment
o IPC paid within 56 days after Engineer receives
Statement
• Cl.14.8 Interest on late payments

Non Payment
• Cl.16.1 Suspension
o Engineer fails to certify
o Employer does not provide Cl.2.4 details
o Non payment
o 21 days notice
• Cl.16.2 Termination

Guarantees & Bonds
• Cl.4.2 Performance Security
• Contractor finance
o Guarantee by Employer
o No Cl.8.1 notice before Guarantee
• Cl.14.2 Advance Payment Guarantee

14.1 The Contract Price
(a) agreed or determined under S. –Cl. 12.3 [Evaluation]
(b) taxes. duties and fees required /by contractor, no adjustment
(c) any quantities which may be set out in the BOQ.
• are estimated and to be re-measured.
• NOTE
• Contractor within 28 d. after the Commencement
Date. a breakdown of each lump sum price in the
BOQ. Engineer (Apply or not) when preparing P.C.

14.2 Advance Payment
• Considered Interest-free loan for mobilization.
• Contractor submits a guarantee
• The total advance payment./ no of installments/ timing/
currencies shall be as stated in the Appendix to Tender.
• Deduct from IPC.
• Unless guarantee. or if not in the Appendix to
Tender. this Sub-Clause shall not apply.

14.2 Advance Payment- continued
FIDIC Training Riyadh 1020 BTA - Dr. Moustafa Ismail March 2018
LEC- V
12March 2018

Advance Payment-continued
14.2 Advance Payment- continued
LEC- V
13March 2018

14.3 Application for Interim Payment Certificates
• Contractor submits monthly a Statement in 6 copies
• form approved by the Engineer- detailed amounts, supporting
documents which include the PR S. Cl. 4.21 -Progress Reports
• Statement include in sequence listed:
a) estimated contract value of the Works executed , Documents
produced, including Variations.
b) any amount added/deducted / changes for legislation/cost CL.
FIDIC Training Riyadh 1020 BTA - Dr. Moustafa Ismail March 2018 LEC-
V
14March 2018

14.3 Application for Interim Payment Certificates- continued
c) Deduction for retention ( App.To Tender)
d) Deduction for the advance payment after 10% of the contract
e) Amounts added and deducted for Plant and Materials
f) any other additions or deductions which may become due
g) the deduction of amounts certified in all previous PC.

V
16March 2018
Contract No. : : Interim Payment No. : 012
: Invoice No. : 012
SAP. P.O. No. : Invoice Period : NOVEMBER 2016
Service Entry Sheet # Cost Center ****
Vendor No. : Invoice Type
Bank Account No. : SA13 4500 0000 042 440792 001 Advance Payment
Bank Name : Saudi British Bank (SABB) X Progress Billing
Bank Branch : King Abdul Aziz Street, Al-Khobar Retetion
Others
: ARABIAN GULF CONSTRUCTION CO., LTD.
: KHURAIS AL CRUDE INCREMENT - TEMPORARY CONSTRUCTION FACILITIES
OVERALL PROGRESS
1.1.1
1.1.2
1.2 527,956 25.554 25.554 423,724.39 5,005.48 428,729.87
8,000,000.00
103,911,894.03 83,397,108.04 985,174.73 84,382,282.7780.2575 0.9481 81.2056
Mobilization 47,744 35,808.00 35,808.00 75.00 5,812,500.007,750,000.00 5,812,500.00
Civil Works
Demobilization 37,549
75.0000
To Date
Description
Planned
Budget
Labor Unit
(BLU)
Planned
Equivalent
Wt.
(Physical)
Planned
Over All
Equivalent
Wt.
Actual Labor Unit (BLU) Actual Equivalent Wt. (Physical) SCHEDULE C Actual Progress Billing
Previous This Period
6600036076
6510748644
MONTHLY PROGRESS BILLING FOR THE MONTH OF NOVEMBER 2016
To Date
Amount
10006668
10-01506-002B
Previous This Report To Date Previous This Report

March 2018
V
17

14.4 Schedule of Payments
• If the Contract includes a schedule of payment:
then unless otherwise stated in this schedule:
• (a) the installments in this schedule of payments shall apply
for S. Cl. 14.3
• The Engineer may determine new installments if not achieved.

14.5 Plant and Materials intended for the Works
• If this Sub-Clause applies. IPC include (i) an amount for Plant
and Materials which have been sent to the Site for
incorporation in the Permanent Works.
• If the lists referred to in sub-paragraphs (b)(i) or (c)(i) below
are not included in the Appendix to Tender. this Sub-Clause
shall not apply.

14.5 Plant and Materials intended for the Works
(a) the Contractor has:
(i) kept satisfactory records (ii) submitted a statement
of the Cost of Plant and Materials to the Site.
• and either:
(b) the relevant Plant and Materials:
i. are those listed in the App. TT.
ii. shipped to the Country. en route to the Site.
iii. are described in a clean shipped bill of lading or other
evidence of shipment.

14.5 Plant and Materials intended for Works continued
OR
c) the relevant Plant and Materials:
(i) are those listed in the Appendix to Tender for payment when
delivered to the Site. and
(ii) delivered to and are properly stored/ protected on the Site and
appear to be in accordance with the Contract.
• The additional amount to be certified shall be 80% of
Engineer’s determination of cost of Plant and Materials

14.6 Issue of Interim Payment Certificates
• Only after receiving and approval of p. security.
• The Engineer shall. within 28 days after receiving a
Statement and supporting documents. issue to the
Employer an IPC stating the amount fairly determines
to be due. with supporting particulars.
V
22March 2018

14.6 Issue of Interim Payment Certificates
 Amount may be withheld.
 A Payment Certificate shall not be deemed to indicate the
Engineer’s acceptance. approval. consent or satisfaction.
LEC- V
23March 2018

14.7 Payment---- Critical
 The Employer shall pay to the Contractor:
(a) the first installment of the advance payment after the later of
after issuing the
• within 42 days Letter of Acceptance or
• within 21 days after receiving the 4.2 [Performance Security)
and Sub-Clause 14.2 [Advance Payment). whichever is later:
(b) the IPC within 56 days after the Engineer receives
(PROPOER) Statement : and
(c) the amount certified in the Final Payment Certificate within
56 days after Employer receives Payment Certificate. 28+56=84

14.8 Delayed Payment
 If the payment is delayed in accordance with Sub-Clause 14.7:
 Contractor shall be entitled to receive financing charges
compounded monthly on amount unpaid during the period of
delay.
 This period is deemed to commence on date for payment.
 financing charges = the annual rate of three percentage points
above the discount rate of the central bank. + 3%
 Entitlement without notice.

14.9 Payment of Retention
• 50 % after TOC or proportioned for section. (40%)
• Balance of the retention is Promptly latest of the expiry dates
of the Defects Notification Periods.
14.10 Statement at Completion
• Within 84 days after TOC. The Contractor shall submit 6
copies of a Statement at completion showing:
i. Total value of all work done
ii. any further sums which the Contractor considers to be due
iii. an estimate of any other amounts the Contractor considers
will become due to him under the Contract.

14.11 Application for Final Payment Certificate
• 56 days after TOC 6 copies of a draft final statement :
(a) the value of all work done
(b) any further sums
The Engineer review, negotiate / dispute or certify.
14.12 Discharge
• With Final Statement. the Contractor shall submit a written
discharge which confirms that the total of the Final Statement
represents full and final settlement of all moneys due to the
Contractor under or in connection with the Contract
(Performance Security and the outstanding balance of this total

14.13 Issue of Final Payment Certificate
• Within 28 days after receiving the Final Statement the
Engineer shall issue. to the Employer. the Final
• Payment Certificate which shall state:
i. the amount which is finally due. And
ii. (if any) due from the Employer to the Contractor or from the
Contractor to the Employer. as the case may be.
14.14 Cessation of Employer’s Liability
• The Employer shall not be liable to the Contractor for any
matter or thing under or in connection with the Contract or
execution of the Works. except to the extent that the
Contractor included an amount expressly for it.
LEC- V
28March 2018

14.15 Currencies of Payment
• The Contract Price shall be paid in the currency or currencies
named in A to Tender/ stated in the Particular Conditions.
• if no rates of exchange are stated in the Appendix to Tender.
they shall be those prevailing on the Base Date and determined
by the central bank of the Country

You are the project Contractor for a private school construction project which includes
hundreds of activities, valued 4.50 M SAR and the contract is FIDIC Red Book 1999,
the value of the school buildings is 4.0 M SAR while the fence and car shades are 0.50
M SAR, total duration 8 months Discuss the following in case you are the project
Contractor
1. If the Employer released an IPC IN 86 days from the day of properly submitted by
the Contractor- discuss clauses late payment- value/ EOT if any
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………....
Analyzed by Eng. …………
Event Analysis 5
March 2018

You are the project Contractor for a private school construction project
which includes hundreds of activities, valued 4.50 M SAR and the contract
is FIDIC Red Book 1999, the value of the school buildings is 4.0 M SAR
while the fence and car shades are 0.50 M SAR, total duration 8 months
Discuss the following in case you are the project Engineer/Employer
1. What is the requirements for releasing the 1st IPC
………………………………………………………………………………
………………………………………………………………………………
………………………………………………………………………………
……………………………………………………………………………....
Analyzed by Eng. …………
Event Analysis 5
March 2018

END OF
LECTURE SEVEN-B
Thank You
‫هللا‬ ‫ورحوة‬ ‫عليكن‬ ‫السالم‬
‫هللا‬ ‫أهاى‬ ‫فى‬

FIDIC Training Contract Price & Payment

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to FIDIC Training Contract Price & Payment

Similar to FIDIC Training Contract Price & Payment (20)

More from Moustafa Ismail Abu Dief

More from Moustafa Ismail Abu Dief (18)

Recently uploaded

Recently uploaded (20)

FIDIC Training Contract Price & Payment