Interim valuations and payment
Most construction contracts require interim payments to be paid to the contractor. This is to relieve the contractor of the burden of financing the whole of the works until completion; works which may take many months or years to complete.
Valuation and payment are formal contractual processes and, therefore, they must be processed strictly in accordance with the contract conditions. Within each contract there will be clauses that set out the method of valuing the works, the criteria under which interim payments will be made, the timing of these payments and the administrative rules under which quantity surveyors (cost managers), contract administrators, employers and contractors must operate.
This guidance note is effective from 12 November 2015.
Guidance is given under the following headings that reflect the Assessment of Professional Competence (APC):
- General principles (Level 1: knowing)
- Practical application (Level 2: doing)
- Practical considerations (Level 3: doing/advising).