PENULTIMATE CERTIFICATE

PAM 1998 Form

Penultimate Cert is issued between CPC and Final Accounts. After the conclusion of Final Accounts (which period of finalization is stated as within 6 months after CPC) the contract sum would be duly adjusted. Subsequently, a Penultimate Certificate (which is an interim certificate) would be issued to pay for the entire amount due to the Contractor leaving only the retention sum based on 5% of original contract sum. (Note: the retention sum would not be adjusted according to the revised contract sum)

Hence, the amount stated in the Penultimate Certificate would be the difference between Original Contract Sum and Final Contract Sum less the retention sum. There would be no further payment certificate issued after the Penultimate Certificate until Final Certificate is issued after CMGD.

PAM 2006 Form

If we look closely at the timeline for Final Certification under PAM06, we will notice that the purpose of Penultimate Cert is significantly changed due to a longer period of final measurement. The Final Accounts could be concluded beyond the CMGD (See Appendix: if non stated, shall be 15 months after CPC)

The purpose of Penultimate Cert under PAM06 is now meant to release monies due to NSC before Final Cert to MC. If there is no NSC there will be no Penultimate Certificate

PWD Form 203A (Rev10/83)

There is no expressed provision for a Penultimate Certificate under this form.
Since there is no specific period for finalisation of final account, there are no issues similar to the ones in PAM98 form.

While Clause 48(a) require the contractor to submit all documents within 3 months after CPC to enable the SO to prepare the Final Account, the is no specific time requirement for the SO to finalise the Final Account accept during the issuance of Final Certificate which is only due 3 months after CMGD. Hence, after CPC is issued, the main contractor is expected to finance the loss and/or expense that arises from any variation until payment is made under Final Certificate

Furthermore, Clause 28(f) provides a direct payment mechanism for Gov to make payment directly to NSC if the need arise.