There are two types of construction certificates, that are issued by the Contract Administrator / Quantity Surveyor to the Contractor and Client accordingly:
- Payment certificates
- Progress certificates.
Payment certificates
The purpose of payment certificates is to inform the client about the release of a payment to the contractor, after a certain amount of work has been carried out or a milestone has been reached.
These certificates are:
- Interim Payment Certificates – made following submission and checking of periodic valuations.Following assessment of the valuation these are issued to the client detailing the amount to be paid to the contractor for work carried out to the date of the certificate. They state:
– The value of work carried out to date.
– The value of retention deducted from the works value.
– The amount already paid to be deducted from the works value.
– The total amount payable under certificate. - Penultimate Certificate – issued when Practical Completion is achieved. This releases half the retention money to the contractor along with money owed as per interim certificate.
- Final Certificate – issued at end of rectification period, releasing retention (subject to all being well with site).
- Certificate of Non-Completion – a prerequisite to claiming liquidated and ascertained damages when the contractor fails to complete the works by the agreed date of completion.
A Statement of Retention can also be issued, which documents the percentage of retention being held in terms of the value of work and money held.
Progress certificates
Issued by the Contract administrator accordingly during the contract period:
- Extension of time – this certifies an extension of time given to a contractor to complete the works and states the revised date for completion of the works along with a reason for extension of time and the number of days given.
- Making Good Defects – issued to confirm that all rectification works / defects to be made good by the contractor have been completed. The Final Certificate cannot be issued if this has not been given for any defects with the work.
