A dispute over payment is an issue that might arise in situations where clear records of payments have not been maintained, leading to a questionable remaining balance.

The dispute can either be between Client and Contractor, or Client and Sub-Consultant. There are different ways of monitoring each:

When the contractor returns his tender, he commits to deliver the works described in the tender package, for the amount specified . If additional works are required that deviate from the ones specified in the tender package (which becomes the contract documents after selecting the preferred tenderer), an instruction needs to be issued first by the Contract Administrator before these works are initiated.

If such a record is not maintained and the contractor goes on with the works without written approval by the Contract Administrator first, it would be very difficult for the contractor to justify how money was spent.  This becomes more complicated if a request for additional payment than the one originally agreed, is being put forward by the contractor for works that have not been agreed first.

Maintaining clear records on the works completed and materials used through valuations, is key for the client-contractor relationship.

Depending on the size of the project and its duration, payment frequency and portions may vary. It’s quite usual for large and complex projects that the client is being invoiced monthly by the sub-consultants. Each sub-consultant may have a different way of monitoring the work that has been carried out by his team and therefore charge the client. Regardless of the monitoring method, the principle remains the same in terms of time spent, key stages reached and invoicing the client.

When a sub-consultant maintains the agreed frequency of issuing invoices and clarity on how time was spent, it would be very difficult for the client to deny payments or dispute them.