Monday, November 29, 2010

Why LAD should not appear in Interim Certificate?

The payment certificate is prepared by the Architect as provided in Cl.30.
An architect is not a party to a contract but just an agent to the employer.
The scope of empowerment to issue the payment certificate is limited to Cl 30.2 which stipulates the amount that expressly described the amount appear/due in the certificate as follows:

Total value of work properly completed + material on site

Less: Amount retained for Retention Sum and amount previously certified.

Other items like LAD, set-off, etc could be valid contractual rights to the employer but beyond the architect’s scope of empowerment under cl 30.2.
Therefore, the employer would have to make the deduction themselves from the monies due or become due.



Apart from Cl 30.2 there are other clause that enpower the architect to include other items into a payment certificate:

Clauses expressly mentioning variation rights or items to be added to contract sum:

4.3 - Statutory Obligation
4.4 - Fees , levies & charges
11.6 - Variation rules
6.3 - Testing
7.2 - Royalties
24.4 - Loss & expence to be included in Cert
27.5 - payment to NSC
28.5 - Expenses due to Nominated Supplier's material

Other Related Questions:

Q: Which VO is included in Payment Certificate & which is not? Approved? Issued? Done?

A: The VO must be included in contract sum in the next certificate of payment after the date of ascertainment as provided by cl 11.9. However only works properly executed would appear in the payment certificate


Q: Is value of work done by others to rectify MC's non conformances allowed to be deducted?

A: Such deduction is the employer’s contractual rights but not included in the Architect’s empowerment under clause 30.2. So, it should not be included in the payment certificate


Q: What is the ratio to value relevant parts in partial cpc in releasing 1st moiety - how is it derived?

A: The value shall be proportionate to the original contract sum


Q: Do Architect certify full material on site or 75%?


A:Subject to Cl 30.2 and the % mentioned in the appendix. If none, then 100%. Note: JKR contract specify 75%

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