Interim Payment Certificate Calculator
Calculate interim payment certificates for construction projects with retention, advance recovery, and materials on site
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Enter contract value, work completed, materials, retention, and advance payment
Frequently Asked Questions
What is an Interim Payment Certificate (IPC) in construction?
An Interim Payment Certificate (IPC) is a document used in construction contracts to certify the value of work completed during a specific period. It serves as the basis for progress payments to contractors, typically issued monthly, and includes work done, materials on site, and applicable deductions like retention and advance recovery.
How is retention calculated on construction payment certificates?
Retention is typically calculated as a percentage (usually 5-10%) of the gross valuation (work completed + materials on site). It's deducted from each payment certificate and held by the employer as security for contract performance. Half is often released upon practical completion, with the remainder upon final settlement.
What is advance payment recovery and how does it work?
Advance payment recovery is the process of recovering the upfront payment given to contractors at project start. Recovery typically starts after a certain percentage of work is completed (often 20-30%) and is deducted as a fixed percentage from each subsequent payment certificate until fully recovered.
Can materials on site be included in payment certificates?
Yes, materials on site that are properly stored, insured, and intended for the project can be included in payment certificates. Their value is typically included at cost without profit, and they must be properly documented with delivery notes and storage receipts.
What happens if a payment certificate is not paid on time in Saudi Arabia?
Late payment in Saudi Arabia may entitle the contractor to interest charges as per Saudi construction law and contract terms. Contracts often specify payment periods (e.g., 30 days from certificate submission). Persistent delays can lead to contract disputes, suspension of work, or termination for employer default.
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