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Forensic Claims Analysis

Engineer to agree format.

In the Open Standard
Anthony ScarlettMember for 21 years 2 months
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Does anyone have any experience of an Engineer who requires the Contractor to agree the format of the Interim Payment Application.

I have some problems producing the amount of detail that the Engineer requires as evidence of works completed on my current project.

We have asked him what documents he requires and his response has beeen ’As an experienced contractor you should know what details are required". To wit the documents required change every month and are used as a dealying tactic in the payment process.

We are now preparing more and more documents every month and provide a document that resembles a VERY detailed final account.

Anyone have any advise on how to deal with this issue.
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7 replies

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  1. 0
    Philip Jonker ·
    #1
    Hi Anthony,

    This sounds like payment milestones, which means that you have to have a certain series of activities completed to claim the milestone payments. What normally happens is that you agree these milestones with the clint, and the set them in the schedule. if al preceding activities are completed, you get paid.

    Regards
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  2. 0
    Andrew Flowerdew ·
    #2
    Antony,

    1. Read the contract as to what is required - probably something along the line of "reasonable information".

    2. If you deem it unreasonable add the additional costs to your account next month - the Engineer won’t like it but formally put in a claim for the additional costs and it might make the Engineer think twice.

    3. After he’s spat his dummy out at you putting it in the account, remain calm and firm and if he still continues down the same avenue suggest you’re going to take the issue to adjudication or whatever dispute procedure you have in your contract.

    4. I fit is truly a delaying tactic and your oppinion is correct he will reform his ways.

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  3. 0
    Anthony Scarlett ·
    #3
    Andrew,

    I like your approach.

    Cheers.

    Anthony
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  4. 0
    Charleston-Joseph Orbe ·
    #4
    Check also if there is an element of bad faith in the part of the Engineer.
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  5. 0
    Shahzad Munawar ·
    #5
    Firstly read Payment Clause and seek requirement of documents which are essential to attach with Monthly Interim Payment Certificate

    Secondly it is better to finalize and agree upon a format of IPC by incorporating all Payments heads such as Claims, VO , Back charges, proviosnal sum etc so that Engineer be made certification without any delay and within certified period stipulated in Contract.
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  6. 0
    Raja Izat Raja Ibrahim ·
    #6
    Hi,
    what i know there is two type of payment monthly payment and milestone payment...
    1.i prefer using milestone payment which this payment is following sequence of project, where they cannot run away from the sequence.
    2.For monthly payment measure by commodities / progress measurement there is so many slot, which they can find payment in advance by doing somthing which not critical and not suppose to do at that time with they also can find reason for EOT with doing major work.
    regards
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  7. 0
    Andrew Flowerdew ·
    #7
    Antony,

    My approach may not go down well with the Engineer but if he is truly using ’unreasonable tactics’ to withold money or delay payments then you should make your thoughts politely known. This should be backed up with some form of action as I’ve suggested so the Engineer knows you are not about to be walked over in this or any other matter - the result hopefully will be mutual respect rather than conflict if approached in the correct manner and this can only be beneficial to the outcome of the project.
    Report

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