FIDIC 1987, clause 60.10 Time for Payment.
The clause 60.10 applies to any payments which are due and payable by the Employer to the Contractor. Price Adjustment Bill is also part of the payments which are due and payable. If the Bill is certified for payment and is then delayed by the Employer for his own internal reasons, then clause 60.10 applies. However, it is important that the payments should become due and payable, for this clause to come into effect.
Clause is applicable for delayed payments of all heads as an IPC is not confined to monthly payments only under clause 60.An IPC can well be issued by the Engineer under any other term of the contract such as delayed mob. advance.etc.In brief,Interest is payable on delay of all Engineer certified payments.
For Interim Payment Certificate.
Question is that, on which amount of IPC calculate the interest claim,
1- On gross work done amount or
2- On net payable amount to contractor afetr all deductions, like mobilization advance 15%, retention money 5% and income tax 6%.
Answer :
The interest is to be calculated on the amount which is due and payable, but which has been delayed. So the interest will be on the net amount after all deductions, and not on gross work done amount.
The clause 60.10 applies to any payments which are due and payable by the Employer to the Contractor. Price Adjustment Bill is also part of the payments which are due and payable. If the Bill is certified for payment and is then delayed by the Employer for his own internal reasons, then clause 60.10 applies. However, it is important that the payments should become due and payable, for this clause to come into effect.
Clause is applicable for delayed payments of all heads as an IPC is not confined to monthly payments only under clause 60.An IPC can well be issued by the Engineer under any other term of the contract such as delayed mob. advance.etc.In brief,Interest is payable on delay of all Engineer certified payments.
For Interim Payment Certificate.
Question is that, on which amount of IPC calculate the interest claim,
1- On gross work done amount or
2- On net payable amount to contractor afetr all deductions, like mobilization advance 15%, retention money 5% and income tax 6%.
Answer :
The interest is to be calculated on the amount which is due and payable, but which has been delayed. So the interest will be on the net amount after all deductions, and not on gross work done amount.
