JCT Section 4 Payment Flashcards
When is the first Interim Valuation Date?
The first Interim Valuation Date is one month from the Date of Possession.
Where can you find the first Interim Valuation Date and intervals between the Interim Valuation Dates?
The first Interim Valuation Date and the intervals between Interim Valuation Dates may be stated in the Contract Particulars or agreed at the Pre-Contact Site Meeting.
What is the Interim Valuation Date?
The date by which the Contractor should submit a Payment Application.
What is a Payment Application?
An application for payment submitted to the Employer’s CA/QS by the Contractor; stating the sum the Contractor considers to be due on the relevant due date and the basis on which that sum has been calculated.
How long between the Interim Valuation Date and the Due Date and what is this time for?
7 days. In this time the Employer’s CA/QS may ask for more information and do a walk around site with the Contractor.
When is the Interim/Payment Certificate due?
The Interim/Payment Certificate is due no later than 5 days after each due date.
What is an Interim/Payment Certificate?
The Interim/Payment Certificate is issued by the Employer’s CA/QS to the Contractor stating the amount due to the Contractor and the basis on which that sum is calculated.
What happens if an Interim/Payment Certificate is not issued by 5 days after the due date, where the Contractor has made a Payment Application?
The Contractor’s Payment Application becomes a Payment Notice and is treated in the same way as a Certificate.
What happens if an Interim/Payment Certificate is not issued by 5 days after the due date, where the Contractor has not made a Payment Application?
The Contractor may at any time after the last date for the issue of the Interim/Payment Certificate give a Payment Notice to the Employer’s CA/QS stating the sum the Contractor considers to be due at the relevant due date and the basis on which that sum has been calculated.
When is the final date for interim and final payment?
The final date for interim and final payment is 14 days from its due date except where the Contractor has issued a Payment Notice later than the last date for the issue of the Payment Certificate. In this case the final payment date is postponed by the number of days the Payment Notice was issued past the last date of the issue of the Payment Certificate.
What is a Pay Less Notice and when is it used?
A Pay Less Notice is a notice of intention to Pay Less than the sum stated in the Interim/Payment Certificate or the Payment Notice. It is given to the Contractor by the Employer’s CA/QS no less than 5 days before the final date for payment.
What are the 4 consequences of Employer’s failure to pay a sum or any part of it?
1) Simple interest.
2) Recoverable as a debt.
3) Right of suspension.
4) Loss and expense.
When is simple interest paid?
If an interim or final payment is not paid by its final date for payment, simple interest on that sum shall be added from the final date for payment until the payment is made.
What does ‘recoverable as a debt’ mean and when does it occur?
If a payment is not made by its final date for payment, it becomes recoverable as a debt which means the Contractor may institute proceedings to recover the amount.
What is right of suspension and when does it occur?
If the Employer fails to pay a sum to the Contractor by its final date for payment, the Contractor may suspend performance of any or all of those obligations until payment is made in full.
