Page 219 - Civil Engineering Project Management, Fourth Edition

Interim monthly payments
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paid the undisputed portion of his application within 28 days of submitting
his account, and so might be entitled to claim interest on it for late payment
(see Section 17.13).
Dayworks charges (see Section 13.8) which have been checked and agreed
by the resident engineer will also need to be included in the next interim
certificate for payment, in so far as the contractor lists them in his account. The
contractor’s account may, of course, list other dayworks charge sheets that
have not been previously submitted to the resident engineer for checking.
If there is time to check them, the resident engineer should include them for
payment. Alternatively he might include a round sum ‘On account of unchecked
daywork sheets submitted’, the sum being what he considers will at least be
payable under them. However, he does not have to include any payment
against a daywork account which provides insufficient information for him
to check it.
Similar problems of the need to make partial or ‘on account’ payments
can arise in respect of claims submitted by the contractor which may be valid
in principle but not sufficiently detailed to support the full claimed figure.
Nothing need be certified in respect of a claim insufficiently detailed for it to
receive any consideration (ICE conditions Clause 53) but amounts should be
included for payment where sufficient details are provided to justify some
payment. All such partial or ‘on account’ payments proposed by the resident
engineer should be drawn to the attention of the engineer when the con-
tractor’s account is forwarded to him.
Where the resident engineer has agreed rates for extras with the contractor
he should draft an appropriate variation order which he sends to the engineer
for checking and issue.

16.4 Payment of lump sums, method related items
and any adjustment item

Unless there is some stipulation that a lump sum is to be paid in stages it only
becomes payable when the whole of the work itemized under the lump sum
is completed. However, fairness has to be applied when an item combines two
operations and nothing is stipulated about staged payment. Occasionally a
lump sum item reads: ‘Provide and set up engineer’s offices as specified and
remove on completion’ so in theory the item is not payable until the end of the
contract. At the tender negotiation stage, agreement should be reached as to
how the sum is to be paid; but if the matter has been missed then it is up to the
resident engineer to suggest how the item should be paid – perhaps 80 per
cent on set-up; 20 per cent on removal, or some other proportion. Lump sums
for such as insurance can be certified for payment as soon as the contractor
produces evidence of insurance.
Payment of method-related items (see Section 15.10) will depend on whether
any special conditions have been laid down about them for staged payment,