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Valuations for interim certificates

Valuations for interim certificates

Under the Housing Grants, Construction and Regeneration Act 1996, a party to a construction contract in excess of 45 days in duration is entitled to interim or stage payments. Every construction contract should include provision for interim payments.

Interim payments are determined in accordance with the contract. This could could be by such methods as valuing the quantity of work completed at stages throughout the process. Alternatively it could be by agreed amounts to be paid at certain dates or when a milestone has been achieved. The process and terms should be set out in the contract.

Procedures for payment by milestone are becoming more common but the traditional route of valuing for work done is still the most popular procedure. Contracts entered into after the amended construction act came into force will be subject to the revised process.

This section is maintained by Khalid Ramzan of Pinsent Masons LLP.