PART 5 - PAYMENT

Question 1

GC 5.1 FINANCING INFORMATION REQUIRED OF THE OWNER

5.1.1

Answer 1

The owner SHALL, at the request of the contractor, before signing the contract, and promptly from time to time thereafter, furnish to the contractor reasonable evidence that financial arrangements have been made to fulfill the owner’s obligations under the contract.

Question 2

GC 5.1 FINANCING INFORMATION REQUIRED OF THE OWNER

5.1.2

Answer 2

The owner SHALL give the contractor notice in writing of any material change in the owner’s financial arrangements to fulfill the owner’s obligations under the contract during the performance of the contract.

Question 3

GC 5.2 APPLICATIONS FOR PAYMENT

5.2.1

Answer 3

Applications for payment on account as provided in Article (A-5 of the agreement - Payment) SHALL be submitted monthly to the owner and the consultant simultaneously as the work progresses.

Question 4

GC 5.2 APPLICATIONS FOR PAYMENT

5.2.2

Answer 4

Applications for payments SHALL be dated the last day of each payment period, which is the last day of the month or an alternative day of the month agreed in writing by the parties.

Question 5

GC 5.2 APPLICATIONS FOR PAYMENT

5.2.3

Answer 5

The amount claimed SHALL be for the value, proportionate to the amount of the contract, of work performed and products delivered to the place of the work as of the last day of the payment period.

Question 6

GC 5.2 APPLICATIONS FOR PAYMENT

5.2.4

Answer 6

The contractor SHALL submit to the consultant, at least 15 calendar days before the first application for payment, a schedule of values for the parts of the work, aggregating the total amount of the contract price, so as to facilitate evaluation of applications for payment.

Question 7

GC 5.2 APPLICATIONS FOR PAYMENT

5.2.5

Answer 7

The schedule of values SHALL be made out in such form as specified in the contract and supported by such evidence as the consultant may reasonably require.

Question 8

GC 5.2 APPLICATIONS FOR PAYMENT

5.2.6

Answer 8

Applications for payment SHALL be based on the schedule of values accepted by the consultant and SHALL comply with the provisions of payment legislation.

Question 9

GC 5.2 APPLICATIONS FOR PAYMENT

5.2.7

Answer 9

Each application for payment SHALL include evidence of compliance with workers’ compensation legislation at the place of the work and after the first payment, a declaration by the contractor as to the distribution made of the amounts previously received using the document CCDC 9A “statutory declaration”

Question 10

GC 5.2 APPLICATIONS FOR PAYMENT

5.2.8

Answer 10

Applications for payment for products delivered to the place of the work but not yet incorporated into the work SHALL be supported by such evidence as the consultant may reasonably require to establish the value and delivery of the products.

Question 11

GC 5.3 PAYMENT

5.3.1

Answer 11

After receipt by the consultant and the owner of an application for payment submitted by the contractor in accordance with GC 5.2 - APPLICATIONS FOR PAYMENT:

1) The consultant will issue to the owner and copy to the contractor, no later than 10 calendar days after the receipt of the application for payment, a certificate for payment in the amount applied for, or in such other amount as the consultant determines to be properly due.

If the consultant certifies a different amount, or rejects the application or part thereof, the owner SHALL promptly issue a written notice to the contractor giving reasons for the revision or rejection, such written notice to be in compliance with payment legislation.

2) The owner SHALL make payment to the contractor on account as provided in Article A-5 of the agreement - PAYMENT on or before 28 calendar days after the receipt by the owner and the consultant of the application for payment, and in any event, in compliance with payment legislation.

Question 12

GC 5.4 SUBSTANTIAL PERFORMANCE OF THE WORK AND PAYMENT OF HOLDBACK.

5.4.1

Answer 12

The consultant will review the work to certify or verify the validity of the application for substantial performance of the work and will promptly, and in any event, no later than 20 calendar days after receipt of the contractors application:

1) Advise the contractor in writing that the work or the designated portion of the work is not substantially performed and give reason why, or;

2) State the date of substantial performance of the work or a designated portion of the work in a certificate and issue a copy of that certificate to each of the owner and the contractor.

Question 13

GC 5.4 SUBSTANTIAL PERFORMANCE OF THE WORK AND PAYMENT OF HOLDBACK.

5.4.2

Answer 13

Where the holdback amount required by the applicable lien legislation has not been placed in a separate lien holdback account, the owner SHALL, NO LATER THAN 10 DAYS prior to the expiry of the holdback period stipulated in the lien legislation applicable to the place of the work, place the holdback amount in a bank account in the joint names of the owner and the contractor.

Question 14

GC 5.4 SUBSTANTIAL PERFORMANCE OF THE WORK AND PAYMENT OF HOLDBACK.

5.4.3

Answer 14

Subject to the requirements of any payment legislation, all holdback amount prescribed by the applicable lien legislation for the work SHALL become due and payable to the contractor no later than 10 working days following the expiration of the holdback period stipulated in the lien legislation applicable to the place of the work.

Question 15

GC 5.4 SUBSTANTIAL PERFORMANCE OF THE WORK AND PAYMENT OF HOLDBACK.

5.4.4

Answer 15

The contractor SHALL submit an application for payment of the lien holdback amount in accordance with GC 5.3 - PAYMENT.

Question 16

GC 5.4 SUBSTANTIAL PERFORMANCE OF THE WORK AND PAYMENT OF HOLDBACK.

5.4.5

Answer 16

Where legislation permits progressive release of the holdback for a portion of the work and the consultant has certified or verified that the part of the work has been performed prior to substantial performance of the work, the owner hereby agrees to release, and SHALL release, such portion to the contractor in accordance with such legislation.

Question 17

GC 5.4 SUBSTANTIAL PERFORMANCE OF THE WORK AND PAYMENT OF HOLDBACK.

5.4.6

Answer 17

Notwithstanding any progressive release of the holdback, the contractor SHALL ensure that such parts of the work are protected pending the issuance of a final certificate for payment and be responsible for the correction of defects or work not performed regardless of whether or not such was apparent when the holdback was released.

Question 18

GC 5.5 FINAL PAYMENT

5.5.1

Answer 18

When the contractor considers that the work is completed, the contractor SHALL submit an application for final payment.

Question 19

GC 5.5 FINAL PAYMENT

5.5.2

Answer 19

The consultant WILL, no later than 10 calendar days after the receipt of an application from the contractor for final payment, review the work to verify the validity of the application and when the consultant finds the contractor’s application for final payment valid, the consultant WILL promptly issue a final certificate for payment to the owner, with a copy to the contractor.

Question 20

GC 5.5 FINAL PAYMENT

5.5.3

Answer 20

If the consultant rejects the application or part thereof, the owner will promptly issue a written notice to the contractor giving reasons for the revision or rejection, such written notice to be in compliance with payment legislation.

Question 21

GC 5.5 FINAL PAYMENT

5.5.4

Answer 21

Subject to the provision of paragraph 10.4.1 of GC 10.4 - WORKERS’ COMPENSATION, and any legislation applicable to the place of the work, the owner SHALL, no later than 5 calendar days after the issuance of a final certificate for payment, pay the contractor as provided in article A-5 of the agreement - PAYMENT and in any event, in compliance with payment legislation.

Question 22

GC 5.6 DEFFERED WORK

5.6.1

Answer 22

If because of climatic or other conditions reasonably beyond the control of the contractor, or if the owner and the contractor agree that, there are items of work that must be deferred, payment in full for that portion of the work which has been performed as certified by the consultant SHALL not be withheld or delayed by the owner on account thereof, but the owner MAY withhold, until the remaining portion of the work is finished, only such an amount that the consultant determines is sufficient and reasonable to cover the cost of performing such differed work.

Question 23

GC 5.7 NON-CONFORMING WORK

5.7.1

Answer 23

No payment by the owner under the contract nor partial or entire use or occupancy of the work by the owner SHALL constitute an acceptance of any portion of the work or products which are not in accordance with the requirements of the contract documents.