It is all time wasting admin stuff. Let’s get on with real works.
You all have been through this when you struggle between paper works and site works. This is especially true for contractors and subcontractors when site progress is pressing.
However, imagine if you are the client, you too will struggle to pay if the records, invoices and receipts of payments are incomplete. It is simply unrealistic to expect anyone to pay blindly.
NEC strikes a balance by putting the responsibility of assessments of the amount due to the Project Manager, while the Contractor is required to make an application of payment providing the details. It cannot just be a single figure.
NEC4 ECC Clause 50.2 makes sure it happens,
“The Contractor submits an application for payment to the Project Manager before each assessment date setting out the amount the Contractor considers is due at the assessment date. The Contractor’s application for payment includes details of how the amount has assessed and is in the form stated in the Scope.”
In NEC4, it is also now mandatory for the Contractor to submit an application for payment before the assessment date, failure of which will lead to non-payment. This “application for payment” is the one which fulfils Clause 50.2.
Clause 50.4 says,
If the Contractor does not submit an application for payment before the assessment date, the amount due at the assessment date is the lesser of
- The amount the Project Manager assesses as due at the assessment date…and
- The amount due at the previous assessment date.
Essentially, late payment application, or an application without details, no payment.
Think twice. Act wise.
