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Interim Payment Certificate

FIDIC / Legal Reference: FIDIC Red Book Clause 14.6

A monthly certificate issued by the Engineer recording the amount of payment due to the contractor in respect of work completed, materials on site, and any other agreed sums. The IPC triggers the employer’s obligation to pay within the period stated in the Appendix to Tender — typically 28 days.

What it means in practice

Under Clause 14.3, the contractor submits a monthly Statement to the Engineer showing: the value of work executed, the value of materials on site, any other sums due, and deductions including retention. The Engineer is required to issue the IPC within 28 days of receiving the Statement.

The employer must then pay the certified amount within 28 days of the IPC date. If the Engineer fails to issue the IPC, or if the employer fails to pay, the contractor is entitled to financing charges under Clause 14.8. After 21 days’ notice, the contractor is entitled to suspend work under Clause 16.1.

Where disputes arise

Undercertification by the Engineer — certifying less than the contractor considers is due — is one of the most common grievances in UAE construction. The practical effect is significant cash flow impact on the contractor while the dispute is resolved through the Clause 20 process.

UAE Context

Payment disputes — particularly on UAE public sector projects — are a significant market issue. The UAE has enacted specific legislation in some Emirates to address late payment, though effectiveness varies. DIAC’s expedited arbitration provides a faster resolution option for payment disputes.

Related terms

Payment certification disputes and cash flow protection are core areas of e-Basel’s construction claims advisory practice.

Construction Claims Consultant UAE →

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