Project Manager needs to clearly communicate how they have assessed the Contractors payment application and what they are certifying. The assessment will include plus/minus other amounts as relevant, such as retention, delay damages, bonuses, KPI’s.
Creating a Payment Certificate
They confirm the assessment date, before producing a summary of their application – on the basis that they will be attaching the full assessment. There is a requirement for the following details:
- Cumulative Price for Work Done to Date – overall Prices to date that would be due.
- Plus other amounts – any other amounts they are entitled to be paid e.g. KPI’s, bonus for early Completion. This should be calculated as a lump sum price to be added.
- Less amounts to be paid – amounts that should be contractually withheld e.g. retention, delay damages (if they are already exceeding Completion Date). This should be calculated as a lump sum number to be withheld.
- Less amount paid in last payment certificate – form is working out cumulative cost but then you need to deduct here what the last payment cert was to see what this month’s amount should be.
- Tax law requires Employer to pay – adjustment for tax if relevant.
- Certified for payment – automatically calculated from all of above.
PM can then create the payment certificate as a draft. This can be checked (and amended if necessary – but press “save” if the form is amended. Attachments can then be added before the payment cert is communicated and appears on the PM’s Payment Certificate Register.
The PM can create a Payment Certificate by clicking on “Payment Certificate” from the red “Create New” dropdown button at the top of the page or by selecting the blue “Create New” button on the Payment Certificate module.