What is the purpose of Clause 14.3 in the FIDIC Yellow Book 1999?

Clause 14.3, titled "Application for Interim Payment Certificates," outlines the procedure for the Contractor to submit statements to the Engineer, detailing the amounts they consider themselves entitled to for work performed. It plays a crucial role in the interim payment process.

How does Clause 14.3 ensure fairness in payment valuation?

Clause 14.3 ensures fairness by requiring the Contractor to provide a detailed breakdown of the amounts claimed, including changes in legislation, retention, advance payment considerations, and more. This transparent approach allows both parties to assess the validity of the payment claim.

What supporting documents are required when submitting a payment claim under Clause 14.3?

Supporting documents include a relevant progress report in accordance with Sub-Clause 4.21 [Progress Reports]. These documents substantiate the claimed amounts and provide a comprehensive view of the project's progress.

How does Clause 14.3 interact with other clauses in the FIDIC Yellow Book 1999?

Clause 14.3 interacts with various clauses such as Sub-Clause 13.7 [Adjustments for Changes in Legislation], Sub-Clause 13.8 [Adjustments for Changes in Cost], Sub-Clause 14.2 [Advance Payment], Sub-Clause 14.5 [Plant and Materials intended for the Works], and Clause 20 [Claims, Disputes and Arbitration]. These interactions ensure a cohesive approach to payment valuation.

Can the submission schedule for payment claims be flexible?

The submission schedule should align with the contract terms. It typically occurs after the end of the payment period stated in the contract or, if not specified, at the end of each month. Adhering to this schedule is essential for the efficient flow of funds.

What role does the Engineer play in the payment valuation process under Clause 14.3?

The Engineer is responsible for approving the form used for the statements. They review the submission to ensure compliance with the contract terms and the approved form. The Engineer's role is crucial in certifying interim payments.

Are there specific requirements for expressing amounts in different currencies under Clause 14.3?

Yes, Clause 14.3 requires expressing amounts in various currencies in which the Contract Price is payable. Adhering to the specified sequence is also important for clarity and consistency.

How does Clause 14.3 contribute to dispute prevention in FIDIC contracts?

By establishing a transparent and structured process for payment valuation, Clause 14.3 contributes to dispute prevention. Clear documentation and adherence to the contract terms reduce the likelihood of disagreements between the parties.

Can Clause 14.3 be modified or amended in a FIDIC Yellow Book 1999 contract?

Any modification or amendment to the standard FIDIC Yellow Book 1999 contract, including Clause 14.3, should be done carefully and in accordance with the contract's provisions for amendments. It's advisable to seek legal advice before making any changes.