The implications of interim payment certificate in UK: A literature review

Umar, Tariq; Tawfik, Andrew

Abstract

The appropriate measurement and valuation of construction works is between the crucial aspects of successful project management. This takes place following traditional surveying methods and inspection techniques, however, both clients and contractors cannot properly follow-up monthly expenditures and payments without following a strict interim payment certificate (IPC) system. Also, setting the right payment methods and conditions promotes financial transactions which help preventing severe financial losses if not structured carefully in early stages of agreements. On contrary, late payments and less certified amounts from client side have many negative consequences including increased disputes, delivery delays, liquidated damages, and other financial losses for stakeholders. This study, therefore, aims to focus on the importance of the IPC system to facilitate the payment process with fewer deputies, using qualitative research approach analysing the available relevant literature focusing on residential projects in the UK. The issues arriving from IPC are divided into six main themes are discussed with a reference to relevant literature. The results indicate that without proper follow-up contractors do not get paid properly and even projects might get terminated mid-way, as cash flows are significantly constrained. Recommendations on improving on the IPC are provided along with areas for further research.

• Presentation Conference Type: Conference Paper (published)
• Conference Name: 13th International Conference on Construction in the 21st Century (CITC 13)
• Start Date: May 8, 2023
• End Date: May 11, 2023
• Acceptance Date: Mar 7, 2023
• Online Publication Date: Aug 1, 2023
• Publication Date: May 8, 2023
• Deposit Date: Aug 14, 2023
• Pages: 440-447
• Book Title: Proceedings of the 13th International Conference on Construction in the 21st Century (CITC 13)
• ISBN: 9781732441644
• Keywords: Construction Management, Interim Payment Certificate, Construction Contracts, Economic and Finance, Contracting
• Public URL: https://uwe-repository.worktribe.com/output/11024804
• Publisher URL: https://www.citcglobal.com/