Mastering Interim Payment Certificates: FIDIC Yellow Book (1999 vs 2017) Explained

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Interim Payment Certificates: FIDIC Yellow Book Explained

1999 vs 2017 Edition

Imagine trying to run a marathon but only getting a sip of water at the finish line. That’s what a project would feel like for a Contractor without interim payments! These clauses (14.3 & 14.6) are the financial lifeblood 🩸 of any FIDIC project.

💸 For the Contractor: It’s All About Cash Flow!
  • Regular payments for wages, materials, plant, and subcontractors.
  • Clause 14.3: Right to claim payment for work done (usually monthly).
  • Clause 14.6: Engineer must certify payments within 28 days.
  • This keeps projects moving and avoids expensive financing risks.

How Did the Process Evolve? (1999 vs 2017)

1999 Edition
  • Payment process clear, but less detail on Engineer’s assessment duties.
  • Withholding rules vague; fewer formal steps for disputes over payments.
  • Focus: “Fair determination” but no direct link to contract dispute machinery.
2017 Edition
  • Increased detail on the format/content of payment statements.
  • Clearer, structured rules for withholding (Clause 14.6.2).
  • Stronger links to Clause 3.7: Any dispute about an IPC triggers a determination process before it escalates to claims/disputes.
  • Smoother, more transparent, and dispute-averse process!
💡 KEY INSIGHT
2017’s payment process is not just “longer”—it’s smarter, more transparent, and far better at avoiding cash flow fights!
🔗 QUICK TIP
If a dispute arises about payment, 2017 Edition provides a clear, step-by-step route for resolution (see Clause 3.7).

Breakdown of the Clauses: Step-by-Step Guide 📝

We’ll break down the 1999 and 2017 FIDIC Yellow Book interim payment process, step by step. Click on each clause below to see what it really means in practice!

Clause 14.3 Application for Interim Payment Certificates – “Show Me the Value!”
  • Timing: Monthly (or as agreed). Contractor prepares a detailed “Statement”. Six copies! 📄
  • Statement Breakdown:
    • 🥩 The Meat: Value of works executed + design docs.
    • 🌶️ The Spice: Adjustments for legal/cost changes.
    • 🤏 Hold the Mayo: Deduct retention money (security).
    • 💰 Paying Back the Loan: Adjust for Advance Payment.
    • 🍅 Extra Toppings: Plant/materials delivered (not yet installed).
    • “Everything Else” Drawer: Other due amounts, e.g., Claims.
    • ➖ Subtracting the Past: Deduct what’s already certified.
  • Why: Transparency, detailed tracking, keeps everyone honest.
Clause 14.6 Issue of Interim Payment Certificates – The Engineer’s Turn
  • ⏰ 28 days: Engineer reviews all, issues IPC to Employer & Contractor.
  • Fair Determination: Engineer states what’s fairly due, explains with supporting details.
  • 🖍️ Red Pen Time (Withholding):
    • Work/materials non-compliant? Withhold estimated fixing cost.
    • Unmet obligations? Withhold after Engineer’s notice.
  • Corrections: Engineer can fix prior IPC errors in later certificates.
  • Not Final Approval: IPC isn’t acceptance of final quality; Defects period still applies.
  • Minimum IPC Value: If net claim < min. threshold, Engineer may skip issuing an IPC (before Take Over).
Clause 14.3 Application for Interim Payment – More Specifics
  • Submission: Usually monthly. Now needs one paper original + one electronic, plus others if required. 💻
  • Format: Must be “acceptable to the Engineer” – likely a specific template.
  • Contents: Very similar to 1999, but laid out more clearly (i)-(x):
    *Must* include Clause 4.20 progress report.
Clause 14.6.1 IPC – Fair Consideration & Transparency
  • ⏰ 28 days: Engineer “fairly considers” amount due (wording change, same deadline).
  • Justification: If certified sum ≠ Contractor’s claim, Engineer must explain the difference in detail.
Clause 14.6.2 Withholding – Clearer Grounds
  • Now lists exact reasons for withholding:
    • (a) Defective work/materials – estimated fix cost withheld.
    • (b) Unmet obligations – only after Engineer’s Notice.
    • (c) Significant errors – allow correction before payment.
  • Engineer must detail calculations for any sums withheld.
Clause 14.6.3 Correction or Modification – Feedback Loop
  • Engineer may still correct errors in future IPCs.
  • New: If Contractor disagrees, they must flag disputed sums in next Statement.
  • Engineer responds; if still not settled, matter can be escalated under Clause 3.7 [Determination].
  • 2-stage resolution process before it becomes a formal dispute!
1999 Edition
  1. Contractor submits Statement (Clause 14.3)
  2. Engineer reviews with supporting docs
  3. Engineer certifies within 28 days (Clause 14.6)
  4. Withholdings/corrections if justified
  5. Not final approval – defects period still to come
2017 Edition
  1. Contractor submits in paper & digital (Clause 14.3)
  2. Engineer reviews Statement + Clause 4.20 report
  3. Engineer certifies, justifies any differences (14.6.1)
  4. Structured withholdings (14.6.2) – clear reasons required
  5. 2-stage feedback: Contractor flags disputes, Engineer responds, escalation if needed (14.6.3/3.7)
🟡 In a Nutshell: Both editions: Contractor applies (14.3), Engineer certifies in 28 days (14.6).
2017 = More specific, transparent, and gives the Contractor a clearer path to challenge/resolve payment disagreements before it becomes a formal dispute.

Key Interpretations & Implications What Does It Really Mean?

🗣️ Here’s what these clauses mean for each party, and why attention to detail, fairness, and process is more critical than ever in both the 1999 and 2017 editions.

📝
Contractor’s Burden: The Contractor must be meticulous! Submitting a detailed, accurate, and timely Statement (Clause 14.3) with all necessary supporting docs is crucial.
The 2017 edition is even stricter on detail and format.
🧑‍🔧
Engineer’s Duty: The Engineer is no rubber stamp. They must “fairly determine” (1999) or “fairly consider” (2017) the amount due (not just math—Clause 14.6).
28-day deadline! Delays can cost the Employer (see Clause 14.8).
⛔
Grounds for Withholding: The Engineer can only withhold money on specific grounds: Clause 14.6 / 14.6.2—defective work, failure to perform, or errors in the Statement. No arbitrary withholdings allowed!
The 2017 edition is extra-transparent on this.
🟡
IPC is Not Final: Interim Payment Certificates are not a final acceptance of the works.
Certification is just a snapshot—defects can still be corrected later (Clause 14.6 / 14.6.3). Defects liability (e.g., Clause 11) always applies.
🔄
Disagreement Path (2017): If the Contractor disagrees with the certified amount (Clause 14.6.3), they can first raise it in the next Statement. If still unresolved (and not already a Clause 3.7 matter), it can be referred formally for determination under Clause 3.7.
This path aims for early, fair resolution—before it escalates to a dispute (Clause 21).

Cross-Referencing: How Interim Payments Connect to the Bigger Picture 🔗

Clauses 14.3 & 14.6 are the central hub of project payments—but dozens of other FIDIC roads lead to and from them! Here’s how the web connects:

📘
The Basics – Definitions (Clause 1.1)
All key payment terms—“Statement”, “Interim Payment Certificate (IPC)”, “Retention Money”, “Contract Price”—are defined here. (e.g., Sub-Clauses 1.1.79, 1.1.45, 1.1.70, 1.1.12, 1.1.1 in 2017)
Why it matters: If you misread a definition, you risk misapplying Clause 14.3 and 14.6.
🔀
Money Calculation Inputs – Variations & Adjustments (Clause 13)
Extra work, value engineering, or cost increases (e.g., under 13.7/13.8) all change the Statement under Clause 14.3 and the certified IPC (14.6).
A delay in valuing Variations means payment gets held up in the IPC!
💵
Advance Payment (Clause 14.2)
Repayment (per 14.2.3) directly impacts each Statement and IPC—amounts deducted in the application, verified by the Engineer.
🚚
Plant and Materials (Clause 14.5)
Value of materials/plant delivered (not yet installed) can be added to the IPC if requirements are met (evidence, guarantees, etc.).
Usually 80% value, but must comply with 14.5 criteria.
📑
Claims (Clause 20)
Financial results of successful claims (Contractor or Employer) are routed through the IPC mechanism in 14.3.
👨‍💼
The Gatekeeper – Engineer’s Role (Clause 3)
Duties & Authority (3.2 in 2017): Engineer certifies payment under 14.6—but can’t change Contract terms.
Agreement or Determination (3.7 in 2017 / 3.5 in 1999): If Engineer/Contractor disagree on values, must use the fair determination process here.
2017 links payment disputes directly to 3.7 before escalation to disputes.
📈
Tracking Progress – The Paper Trail
Progress Reports: 4.20 in 2017 / 4.21 in 1999—must be included in the Statement under 14.3. Engineer uses these to verify progress before certifying the IPC.
Poor or late reports = delayed payments!
🗄️
Contractor’s Records (Clause 6.10)
Detailed site records aren’t attached to every IPC, but underpin the numbers in the Statement. Engineer can request to inspect if needed.
🪙
The Security Blanket – Retention Money (Clause 14.9)
Retention % is applied in the Statement (14.3), verified in the IPC (14.6). Money is accumulated via the IPC process and released separately per 14.9.
⏳
The Deadlines – Time is Money!
Payment by Employer (14.7): Deadline (e.g., 56 days in 1999) for payment after IPC certified.
Delayed Payment (14.8): If late, Contractor earns financing charges, calculated from the IPC.
Suspension/Termination (16): Persistent non-payment or non-certification gives the Contractor rights to suspend/terminate.
🧰
Defects & Taking Over
Taking Over (Clause 10): IPCs continue until Taking Over Certificate. After, process shifts to Final Payment Certificate (14.11+).
Defects (Clause 11): IPC isn’t final acceptance; defects found during assessment let the Engineer withhold sums as needed.
🍲 Think of it like this:
The Application (14.3) gathers all financial ingredients. The Engineer (Clause 3, 14.6) checks the recipe, adjusts where needed, and certifies the final dish (the IPC amount). The Employer must pay up on time (14.7), or face penalties (14.8) or even the Contractor walking away (16).
It’s all connected!

Interactive Connection Map
How Do Interim Payments Link to Everything Else?

Click a node to see its cross-reference.

Clauses 14.3 & 14.6 – The Payment Engine

Clause 14.3 (Application) and Clause 14.6 (Certification) are the heart of the interim payment process.
The Contractor applies, the Engineer certifies, and the Employer pays—or the whole project stalls!

Deep Dive: Clause 14.3 · Clause 14.6 Explained

Definitions (Clause 1.1)

Key payment terms like “Statement”, “IPC”, “Retention Money”, and “Contract Price” are all defined here. Misinterpret a definition and you might misapply Clause 14.3 or 14.6!

Variations & Adjustments (Clause 13)

Any extra work, value engineering, or cost increases under 13.7/13.8 change the numbers in the Statement and IPC.
If a Variation isn’t valued, payment can be delayed!

Plant & Materials (Clause 14.5)

If you’ve delivered (but not installed) major materials or plant, Clause 14.5 sets the rules for payment (proof, guarantees).
Usually up to 80% value is added to the IPC under 14.3.

Claims (Clause 20)

Financial results of approved claims are processed via the IPC mechanism—showing up in the next Clause 14.3 Statement and certified under 14.6.

Deadlines & Rights (14.7/14.8/16)

14.7: Sets Employer’s deadline for payment after IPC certified.
14.8: If late, Contractor earns financing charges.
16: Persistent non-payment or non-certification lets the Contractor suspend or terminate.

Retention Money (Clause 14.9)

Retention percentage is deducted in each Statement and IPC, building up a “security fund”. Its release later (per 14.9) is a separate process.

Progress Reports (4.20/4.21)

Must be included with every Statement (14.3). The Engineer relies on this to verify work and value before certifying payment (14.6).

Engineer’s Role (3/3.7)

3.2: Confirms the Engineer’s authority for certification.
3.7 (2017): Outlines the process for agreement/determination—crucial when Contractor and Engineer don’t agree on an IPC amount.

What If Scenarios? 🔍

Click on each scenario to reveal the outcome (with clause numbers and practical implications).

Likely Outcome:
The Engineer’s 28-day clock to issue the IPC (Clause 14.6) starts from when the late Statement is actually received, not from the original due date.
Result: Payment to Contractor is delayed by those 10 days.
1999 Outcome:
Procedure is less clear. The Contractor may need to challenge via correspondence, and if unresolved, it could escalate to a Dispute under Clause 20.

2017 Outcome:
The Engineer must provide specific reasons (Clause 14.6.1).
Contractor then identifies the shortfall in the next Statement. If still unresolved, they may refer it to the Engineer under Clause 3.7 (Clause 14.6.3) for a formal determination.
2017 = Clearer and fairer challenge path!
Outcome (Both Editions):
Contractor becomes entitled to financing charges under Clause 14.8.
If the delay persists, it can be grounds for suspension (Clause 16.1) or even termination (Clause 16.2) by the Contractor.
The contract gives the Contractor powerful remedies!
Outcome (Both Editions):
Before Taking-Over, the Engineer is not obliged to issue the IPC (Clause 14.6 / 14.6.2). The amount will likely roll over into the next payment cycle.
No “micro-payments” — helps reduce admin for small sums.

Suggestions for Clarity & Improvement 🌫️➡️☀️

How to avoid grey areas in interim payments—use proactive contract language!

🤔
Potential Sticking Point:
“Supporting Documents” (Clause 14.3): What’s really needed?
The GCs say submit “supporting documents” with the Statement—but don’t say what those are. Some Engineers want full detail, others accept summaries. This grey area can cause rejection or delay.
💡
Suggestion (Aligns with GP2 – Clarity):
Use the Particular Conditions (PCs) to set a baseline. Example:
EXAMPLE PC for Clause 14.3:
“In addition to the requirements of Sub-Clause 14.3, the supporting documents accompanying each Statement shall include, as a minimum:
  1. Detailed measurement sheets based on [mention specific standard, e.g., IS 1200 Parts 1-28 for India, or another agreed standard] for all work claimed under sub-paragraph (i);
  2. Copies of invoices for major Materials and Plant claimed under sub-paragraph (v) but not yet incorporated;
  3. Relevant sections of the updated Programme showing progress against activities claimed; and
  4. [Any other project-specific requirement, e.g., updated quality assurance records].
”
How it helps: Now the Contractor gets a clear checklist, and the Engineer can’t delay or reject for “not enough info.” The process becomes transparent and predictable!

Avoiding Ambiguity: “Acceptable Form” & “Fairness” in Interim Payments 📝⚖️

Pinpointing potential grey areas—and how to draft them out of your contract language.

📄
Grey Area: “Form acceptable to the Engineer” (Clause 14.3 (2017))
The Issue: The Statement must be in an “acceptable form”—but who decides what’s ‘acceptable’? This risks giving the Engineer subjective power. What if a standard format is suddenly rejected mid-project?
Suggestion (GP2 – Clarity):
Define the format up front in the Particular Conditions (PCs).
EXAMPLE PC:
Amend Sub-Clause 14.3(a) to read:
“(a) be in the format set out in [Specify location, e.g., Annex [Y] to these Particular Conditions or Employer’s Requirements Volume Z, Section X];”
How it helps: Both sides know what’s required from day one—avoiding disputes over formatting preferences.
⚖️
Grey Area: “Fairly Determines/Considers” (Clause 14.6)
The Issue: “Fair” relies on the Engineer’s professional judgment and neutrality. Defining ‘fairness’ is tricky and context-dependent. Trying to pin it down too hard could even conflict with FIDIC’s core contract principles (GP1).
Suggestion (GP1 & GP2 – Process over Definition):
Don’t try to define ‘fairness’ in the PCs. Instead, ensure robust, transparent challenge mechanisms (which FIDIC 2017 provides via Clause 3.7 and 14.6.3).
How it helps: Focus on the process: if a party feels the Engineer hasn’t acted fairly, there’s a clear, contractually defined path for challenge and resolution—without risking the Engineer’s intended impartial role.

Drafting Out Grey Areas: Timeline & Frequency ⏱️📅

Fine-tune your contract language to make payment timing fair, certain, and project-appropriate.

⏱️
Timelines for Information Requests
Clause 14.6: Does the 28-day clock stop for extra info?
The Issue: GCs say Engineer certifies in 28 days from receiving the Statement (Clause 14.6). But what if the Engineer asks for more details after 10 days? Does the clock pause? GCs are silent, risking disputes and delays.
Suggestion:
  • Option 1 (Pro-Contractor):
    EXAMPLE PC 1:
    “If the Engineer requests additional supporting particulars after receiving the Statement, the period of 28 days for issuing the IPC shall be calculated from the date the Engineer receives such additional particulars, provided the Engineer’s request was made within 7 days of receiving the initial Statement.”
  • Option 2 (Emphasis on Complete Submission):
    EXAMPLE PC 2:
    “The period of 28 days for issuing the IPC shall not be extended if the Engineer requests additional supporting particulars, unless such request arises from a failure by the Contractor to provide the minimum supporting documents specified under Sub-Clause 14.3 [as amended by PC, if applicable].”
How it helps: Both options give certainty—but favour different parties. Pick the best for your risk profile. Either way, disputes and uncertainty vanish!
📅
Payment Frequency
Is monthly always right?
The Issue: For short projects or milestone-based work, monthly may be too frequent or too rare to match real progress.
Suggestion: Amend Clause 14.3 to set a project-appropriate interval.
EXAMPLE PC:
“The Contractor shall submit a Statement to the Engineer at the intervals stated in the Contract Data [or specify e.g., ‘within 7 days of achieving each Milestone defined in…’], in place of the monthly submissions stated in Sub-Clause 14.3. Each Statement shall be prepared and submitted in accordance with Sub-Clause 14.3.”
How it helps: Makes payment fit the job. For fast or milestone-driven projects, this avoids pointless monthly paperwork and lets payments track real achievement.

Key Principles Recap 🛠️

Keep these core guidelines front and center when drafting Particular Conditions for interim payments.

🎯
GP1 (Roles): Don’t undermine the Engineer’s professional judgment in certification. Avoid requiring Employer approval of the IPC amount.
📝
GP2 (Clarity): Use PCs to define ambiguous terms (like required supporting docs, acceptable format), clarify processes (like handling information requests), and explicitly state any deviations from standard timeframes or frequencies. Always specify how the PC modifies the GC (replaces, adds to).
⚖️
GP3 (Risk): Be mindful of how clarifications might subtly shift risk (e.g., pausing the certification clock). Ensure the allocation remains fair.
⏳
GP4 (Time): Any adjustments to timeframes (like payment frequency or certification period) must remain reasonable for all parties.
By thoughtfully using the Particular Conditions to address potential ambiguities before they cause problems, you can make the interim payment process run like a well-oiled machine!

Final Takeaways 🔄

The interim payment cycle is the heartbeat of a FIDIC contract. Here’s what matters most:

💰
Purpose: Keeps the Contractor’s cash flow healthy and ensures the Employer pays for actual progress.
🔁
Process: Contractor applies (usually monthly) via a detailed Statement (Clause 14.3). Engineer reviews and certifies the amount due fairly within 28 days (Clause 14.6). Employer pays per the certificate (Clause 14.7).
⚙️
Key Changes (1999 vs 2017): 2017 edition adds procedural layers: more detail in Statements, clearer rules/reasons for withholding, and a defined pre-Dispute path (Clause 14.6.3 → 3.7).
⚠️
Risks: Delays in submission or certification disrupt cash flow. Disputes may arise over value/withholding. Employer non-payment triggers serious consequences (Clause 14.8, Clause 16).
🌟
Best Practice: Contractors: accurate, timely, well-documented Statements.
Engineers: fair, professional, and prompt certification.
Employers: timely payment.
Open communication solves issues early.
Understanding the obligations, timelines, and interaction with other clauses under both the 1999 and 2017 editions is essential for all parties. Keep the payment cycle healthy, and the project moves forward!

Sequence of Operations involving Clause 14.3 and Clause 14.6:

Sequence of Operations: Clauses 14.3 & 14.6 ⏩

How interim payments flow—step by step.

👷‍♂️✍️
Step 1: Work Done & Contractor Prepares the Application
Action: Contractor carries out work during the agreed payment period (usually a month).
Trigger: End of the payment period arrives.
Clause Link: Clause 14.3 [Application for Interim Payment Certificates]
  • Calculate estimated value of Works and any completed design/Documents.
  • Include any adjustments (Variations, cost changes: Clause 13).
  • Deduct Retention Money (Clause 14.9), and repayments for Advance Payment (Clause 14.2).
  • Add value for Plant/Materials delivered (but not yet installed) (Clause 14.5).
  • Include agreed/determined Claims (Clause 20).
  • Gather all supporting documents (measurements, invoices, etc.) and prepare the Progress Report (Clause 4.20/4.21).
Output: Contractor compiles all of the above into the formal “Statement” in the required format and number of copies.
📨
Step 2: Contractor Submits the Statement to the Engineer
Action: Contractor formally submits the complete Statement, with all supporting documents and the progress report, to the Engineer.
Clause Link: Clause 14.3
Timing: Should happen after the end of the payment period it covers (usually early in the next month).
Critical Point: The Engineer’s 28-day review clock starts only upon receipt of a Statement that fully complies (with all required support). Late/incomplete submissions delay everything!

Sequence of Operations: Step 3 🧐📜

🧐📜
Step 3: Engineer Reviews and Certifies the Payment
Action: Engineer reviews the Contractor’s Statement & all supporting documents. They assess progress, quality, calculations, and apply contract terms.
Clause Link: Clause 14.6 [Issue of Interim Payment Certificates / IPC]
Engineer’s Duty: “Fairly determine” (1999) or “fairly consider” (2017) the amount properly due for that period.
Potential Adjustments:
  • Disagreement with the Contractor’s valuation.
  • Withholding for defective work or unmet obligations (Clause 14.6 / 14.6.2).
  • Correcting errors from previous certificates (Clause 14.6 / 14.6.3).
Output: Engineer prepares and issues the IPC, stating the certified amount and providing supporting particulars (explaining any differences from the Contractor’s application, as required by Clause 14.6.1 in 2017).
Who Gets It: IPC is issued to the Employer (with a copy to the Contractor).
Deadline: The entire process must be completed within 28 days after receiving the compliant Statement from the Contractor.

Sequence of Operations: Step 4 🏦➡️🤝

🏦➡️🤝
Step 4: Employer Pays the Contractor
Action: Employer receives the IPC from the Engineer and arranges payment of the certified amount to the Contractor.
Clause Link: Clause 14.7 [Payment]
Deadline: Payment must be made within the time stated in the Contract Data (default: 56 days), counted from when the Engineer received the Contractor’s Statement (Step 2), not from when the IPC is issued (Step 3)!
Example: Engineer receives Statement on Day 1, issues IPC on Day 28. Employer’s 56-day clock started on Day 1. Only 28 days remain to pay after the IPC is issued.
⚠️ Common mistake: Many get the start date wrong—don’t miss the real payment deadline!

Sequence of Operations: Step 5 🔄⚠️

⏰💸
Late Payment?
If the Employer misses the Clause 14.7 deadline, Clause 14.8 [Delayed Payment] automatically entitles the Contractor to financing charges.
Continued failure is serious and can trigger Clause 16 (suspension or even termination).
🤷‍♂️📑
Contractor Disagrees with IPC?
1999: No specific procedure in Clause 14—requires formal communication, possibly escalating to a Claim/Dispute.
2017: Use Clause 14.6.3: Contractor identifies disputed amount in next Statement. If not corrected in the following IPC, escalate to the Engineer for a formal determination under Clause 3.7.
🚫⏳
Engineer Fails to Certify?
If the Engineer misses the 28-day deadline in Clause 14.6, the Contractor (after giving notice) can suspend work (Clause 16.1) or potentially terminate (Clause 16.2).
🔄
The Cycle Repeats
This full sequence (Steps 1–4/5) repeats for each payment period (usually monthly) until the final payment process starts after the Works are completed and Taken Over.
Knowing “who does what, when, and what triggers the next step” is absolutely vital for managing expectations and keeping project finances healthy!

Contractor’s Interim Payment Application Checklist ✔️

(Based on Clause 14.3) — Use this checklist before submitting each Statement.

Preparation Timing
Format & Submission
Content – Valuations & Calculations
Supporting Documents
Submission

Engineer’s IPC Issuance Checklist 📝✔️

(Based on Clause 14.6) — Use this for each IPC review and issuance.

Receipt & Timing
Review & Assessment
Withholding & Minimum Amount
IPC Document

Employer’s Payment Action Checklist 🏦✔️

(Based on Clause 14.7) — Steps to complete after each IPC is issued.

Sample Letter: Contractor Submitting Monthly Statement

For use under FIDIC Yellow Book (1999/2017), Sub-Clause 14.3
[Contractor’s Letterhead] Date: [Date]    Our Ref: [Contractor’s Reference] To: The Engineer [Engineer’s Name/Company] [Engineer’s Address] CC: [Employer’s Name/Company – Optional] Subject: Contract No. [Contract Number] – [Contract Name] Application for Interim Payment Certificate No. [IPC Number] – Period Ending [Date, e.g., 31 July 2024] Pursuant to FIDIC Yellow Book [1999/2017] Sub-Clause 14.3 Dear Sir/Madam, In accordance with Sub-Clause 14.3 of the Conditions of Contract, we hereby submit our Statement for the value of work executed up to [Date, e.g., 31 July 2024]. The amount applied for is [Currency and Amount]. Please find enclosed the following supporting documents: • Statement No. [IPC Number] detailing the build-up of the amount applied for. • Progress Report No. [Report Number] for the period ending [Date]. • [List other key supporting documents, e.g., Detailed Measurement Sheets, Material Invoices, Variation Support, Claim Substantiation if applicable]. We trust the enclosed is comprehensive and sufficient for your review and certification. We look forward to receiving Interim Payment Certificate No. [IPC Number] in accordance with Sub-Clause 14.6. Yours faithfully, [Signature] [Name of Contractor’s Representative] [Title] For and on behalf of [Contractor’s Company Name] Enclosures: As listed above.

Sample Letter: Engineer Issuing Interim Payment Certificate

For use under FIDIC Yellow Book (1999/2017), Sub-Clause 14.6
[Engineer’s Letterhead] Date: [Date]    Our Ref: [Engineer’s Reference] To: The Employer [Employer’s Name/Company] [Employer’s Address] CC: [Contractor’s Name/Company] Subject: Contract No. [Contract Number] – [Contract Name] Issuance of Interim Payment Certificate No. [IPC Number] Pursuant to FIDIC Yellow Book [1999/2017] Sub-Clause 14.6 Dear Sir/Madam, Further to the Contractor’s Statement No. [IPC Number] received on [Date Statement Received], we have assessed the application in accordance with the Conditions of Contract. Pursuant to Sub-Clause 14.6, we hereby certify that the amount fairly considered due to the Contractor for the period ending [Date] is [Currency and Amount]. Please find attached Interim Payment Certificate No. [IPC Number] together with supporting particulars detailing the calculation of this amount. In accordance with Sub-Clause 14.7, payment of the certified amount is due within [e.g., 56 days] of the date we received the Contractor’s Statement, i.e., by [Calculate and state the due date]. Yours faithfully, [Signature] [Name of Engineer/Authorised Person] [Title] For and on behalf of [Engineer’s Company Name] Attachment: Interim Payment Certificate No. [IPC Number] and Supporting Particulars.

Sample Letter: Engineer Issuing IPC with Withheld Amounts

For use under FIDIC Yellow Book (1999/2017), Sub-Clause 14.6 / 14.6.2
[Engineer’s Letterhead] Date: [Date]    Our Ref: [Engineer’s Reference] To: The Employer [Employer’s Name/Company] [Employer’s Address] CC: [Contractor’s Name/Company] Subject: Contract No. [Contract Number] – [Contract Name] Issuance of Interim Payment Certificate No. [IPC Number] with Withholding Pursuant to FIDIC Yellow Book [1999/2017] Sub-Clause 14.6 / 14.6.2 Dear Sir/Madam, Further to the Contractor’s Statement No. [IPC Number] received on [Date Statement Received], we have assessed the application in accordance with the Conditions of Contract. Pursuant to Sub-Clause 14.6, we hereby certify that the amount fairly considered due to the Contractor for the period ending [Date] is [Currency and Certified Amount]. Please find attached Interim Payment Certificate No. [IPC Number] together with supporting particulars detailing the calculation of this amount. Withholding of Payment: Please note that, in accordance with Sub-Clause [14.6 / 14.6.2], the following amount(s) have been withheld from the amount applied for by the Contractor: Reason 1: [e.g., Defective Work] – Amount: [Currency and Amount Withheld] Details: [Specify the defective work, e.g., “Rectification required for defective concrete finish in Area X as detailed in Non-Conformance Report NCR-123”]. The amount withheld represents the estimated cost of rectification. Reason 2: [e.g., Failure to Perform Obligation] – Amount: [Currency and Amount Withheld] Details: [Specify the obligation and the failure, e.g., “Failure to submit updated As-Built drawings for Section Y as required by Clause 5.6 and notified in our letter Ref: ZZZ dated DD/MM/YY”]. The amount withheld represents the assessed value of this obligation. The total amount withheld is [Currency and Total Withheld Amount]. The supporting particulars provide further detail. In accordance with Sub-Clause 14.7, payment of the certified amount is due within [e.g., 56 days] of the date we received the Contractor’s Statement, i.e., by [Calculate and state the due date]. Yours faithfully, [Signature] [Name of Engineer/Authorised Person] [Title] For and on behalf of [Engineer’s Company Name] Attachment: Interim Payment Certificate No. [IPC Number] and Supporting Particulars (including details of withholding).

Sample Letter: Contractor Expressing Dissatisfaction with Certified Amount

For use under FIDIC Yellow Book 2017, Sub-Clause 14.6.3
[Contractor’s Letterhead] Date: [Date]    Our Ref: [Contractor’s Reference] To: The Engineer [Engineer’s Name/Company] [Engineer’s Address] CC: [Employer’s Name/Company – Optional] Subject: Contract No. [Contract Number] – [Contract Name] Interim Payment Certificate No. [IPC Number] – Identification of Disagreed Amounts Pursuant to FIDIC Yellow Book 2017 Sub-Clause 14.6.3 Dear Sir/Madam, We refer to Interim Payment Certificate (IPC) No. [IPC Number] issued by you on [Date IPC Issued] regarding our Statement No. [IPC Number] for the period ending [Date]. While we acknowledge receipt of the IPC, we note that the certified amount of [Currency and Certified Amount] does not include certain amounts which we consider are properly due under the Contract. Pursuant to Sub-Clause 14.6.3, we hereby identify the following amounts which were included in our Statement No. [IPC Number] but not certified in IPC No. [IPC Number], and which do not concern matters currently under determination via Sub-Clause 3.7: Item/Amount 1: [e.g., Valuation of Variation No. 5] – Amount Disputed: [Currency and Amount] Reason for Entitlement: [Basis, e.g., “Value calculated based on agreed rates in VO No. 5 dated…”]. Item/Amount 2: [e.g., Cost for Rectification of Employer-Risk Event] – Amount Disputed: [Currency and Amount] Reason for Entitlement: [Basis, e.g., “Costs incurred rectifying damage caused by [Event] detailed in our Notice Ref ABC…”]. We request that these identified amounts, totalling [Currency and Total Disputed Amount], be reconsidered and included in the next Interim Payment Certificate (IPC No. [IPC Number + 1]) in accordance with Sub-Clause 14.6.3. We will include these amounts accordingly in our Statement No. [IPC Number + 1]. Should these amounts not be certified in IPC No. [IPC Number + 1], we reserve our right to refer the matter for agreement or determination under Sub-Clause 3.7. Yours faithfully, [Signature] [Name of Contractor’s Representative] [Title] For and on behalf of [Contractor’s Company Name]

Sample Letter: Contractor Notifying Employer of Late Payment

For use under FIDIC Yellow Book (1999/2017), Sub-Clauses 14.7 & 14.8
[Contractor’s Letterhead] Date: [Date]    Our Ref: [Contractor’s Reference] To: The Employer [Employer’s Name/Company] [Employer’s Address] CC: The Engineer [Engineer’s Name/Company] Subject: Contract No. [Contract Number] – [Contract Name] Notice of Late Payment – Interim Payment Certificate No. [IPC Number] Pursuant to FIDIC Yellow Book [1999/2017] Sub-Clauses 14.7 & 14.8 Dear Sir/Madam, We refer to Interim Payment Certificate (IPC) No. [IPC Number], issued by the Engineer on [Date IPC Issued], certifying an amount of [Currency and Certified Amount] as due to us. In accordance with Sub-Clause 14.7 of the Conditions of Contract, payment of this amount was due by [State the Due Date calculated as per Clause 14.7]. As of today’s date, [Date], we confirm that this payment has not been received. Please be advised that pursuant to Sub-Clause 14.8, we are entitled to receive financing charges on the unpaid amount from the due date until the date payment is received. We request that the outstanding payment of [Currency and Certified Amount], together with accrued financing charges, be made immediately. Failure to make payment constitutes a breach of your obligations under the Contract and we reserve all our rights in this regard, including those under Clause 16 [Suspension and Termination by Contractor]. Yours faithfully, [Signature] [Name of Contractor’s Representative] [Title] For and on behalf of [Contractor’s Company Name]
Interim Payment Certificates

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