FIDIC 2017 Red Book Construction contract | Clause 14 - Contract Price & Payment Explained скачать в хорошем качестве

FIDIC 2017 Red Book Construction contract | Clause 14 - Contract Price & Payment Explained

Mastering FIDIC Red Book 2017: Comprehensive Guide to Clause 14 - Contract Price & Payment. 🌐 Visit CMC shop for ready made templates: https://ko-fi.com/klinkercontracts/shop Welcome to our in-depth exploration of the FIDIC Red Book 2017, specifically focusing on Clause 14: Contract Price and Payment. Whether you are a Contract Manager, Engineer, Employer, or Contractor, understanding these payment procedures is vital for ensuring project liquidity and legal compliance. In this video, we break down the complexities of how money moves in a FIDIC-based construction project. The Fundamentals of the Contract Price (Sub-Clause 14.1) The journey begins with understanding what constitutes the Contract Price. Unless stated otherwise in the Particular Conditions, the price is based on the valuation of the Works and is subject to adjustments, additions, or deductions as specified in the contract. Importantly, the Contractor is responsible for all taxes and duties, and the price will not be adjusted for these costs except in specific cases regarding changes in law. We also clarify that quantities in a Bill of Quantities are typically estimated, not actual quantities. Advance Payments and Guarantees (Sub-Clause 14.2) One of the most critical phases for a Contractor is the Advance Payment, which acts as an interest-free loan for mobilization. To secure this, the Contractor must provide an Advance Payment Guarantee. We explain: • How to apply for the Advance Payment Certificate. • The requirements for the guarantee to remain valid until the loan is fully repaid. • The repayment mechanism, which typically involves percentage deductions from Interim Payment Certificates (IPCs) once work reaches a certain threshold (often 10% of the Accepted Contract Amount). The Interim Payment Cycle (Sub-Clause 14.3 & 14.6) How does a Contractor get paid monthly? It starts with the Statement. Every month (or as stated in the Contract Data), the Contractor submits a detailed Statement showing the amounts they believe they are entitled to. This include: • The value of executed works. • Adjustments for changes in legislation or costs. • Deductions for Retention Money. • Amounts for Plant and Materials intended for the works. The Engineer then has 28 days to issue the Interim Payment Certificate (IPC), identifying any differences between the certified amount and the Contractor's Statement. Payment for Plant and Materials (Sub-Clause 14.5) FIDIC 2017 provides a specific mechanism for the Contractor to receive payment for materials not yet incorporated into the permanent works. This applies if materials are shipped to or delivered to the site. We detail the conditions for this payment, including the need for satisfactory records, evidence of insurance, and sometimes a bank guarantee to protect the Employer. Retention Money and Its Release (Sub-Clause 14.9) Retention Money serves as security for the Employer. This video explains the two-stage release process: 1. The first half is released after the Taking-Over Certificate for the Works (or a Section) is issued. 2. The second half is released after the expiry of the Defects Notification Period (DNP). Delayed Payments and Financing Charges (Sub-Clause 14.8) What happens if the Employer is late? Under Sub-Clause 14.8, the Contractor is entitled to financing charges (interest) compounded monthly on any unpaid amount. This right exists without the need for a formal notice or certification. We discuss how these rates are typically calculated (often 3% above the local bank lending rate). The Road to Final Settlement (Sub-Clause 14.11 - 14.13) The project concludes with the Final Payment Certificate (FPC). This involves several steps: • Submission of the Statement at Completion. • The Draft Final Statement submitted within 56 days of the Performance Certificate. • The concept of Discharge, where the Contractor confirms that the Final Statement represents full and final settlement of all moneys due. • The final issuance of the FPC by the Engineer. Cessation of Employer’s Liability (Sub-Clause 14.14) Finally, we cover the "cutoff" point for claims. The Employer’s liability generally ceases once the Final Statement is settled, except for specific indemnification obligations or cases of fraud and gross negligence. Why Watch This Video? Navigating the FIDIC Red Book 2017 requires precision. Errors in payment applications or missing deadlines for Statements can lead to major cash flow issues or the loss of legal rights. This guide ensures you stay compliant with the General Conditions and understand your financial obligations and entitlements. #Construction #ContractManagement #ProjectManagement #Contractor #Contracts #Contract #constructionmanagement #engineering #legal #Procurement #Engineering #SupplyChain #FIDIC