Quantity Surveyors are able to carry out monthly valuations of work-in-progress in order to make stage payments to the contractor.
This includes the physical measurement of the work on the site and materials delivered.
The valuation for interim certificates should be made as accurately as is reasonably possible, and the contractor is entitled under the terms of the contract to the full value of work executed on site, less a specified retention sum.
One of the main functions of the contractor's quantity surveyor is to ensure timely and full payment for work carried out on site.
For most contractors interim valuations and certificates form their only source of income, from which they fund the whole of their building operation. In general, building contracts provide within their conditions regular and timely payments to the contractor.
Interim Valuations is the bill that includes cost spent on works, which are completed and in progress in a construction. This is prepared by the contractor’s Quantity Surveyor and check by the consultancy Quantity Surveyor.
The purpose of this, is to obtain money required for carrying out the work.
Interim Valuation are prepared by the Quantity Surveyor whenever the architect considers them to be necessary for the purpose of ascertaining the amount to be stated as due in an interim certificate.
The architect is contractually bound to issue interim certificates at the period stated within the conditions of contract.
Interim certificates is a payment certificate issued under the clause “Contract Price and Payment”, other than the final payment certificate (FIDIC Conditions of Contract Definition)
Most standard forms of contract state an entitlement on the part of the contractor to interim payment.
These payment assist in the contractor’s cash flow, but the actual determination of the contractor’s entitlement is not made until the final certificate.
The interim payments are therefore sums paid on account of whatever the contractor might eventually be entitled to recover from the employer. Most standard forms make issue of a certificate a condition precedent to the contractor’s right to payment.
It is a matter of fact whether payment for work carried out is a statement of acceptance or approval. Most contract provisions for interim certification and payment are based on cumulative valuation of work done, and are only for payment on account.
They are not binding nor conclusive of acceptance of the work.
We will assess the value of any variations and extras and these costs will be included in interim applications for payment.
The valuation of variations involves the omission of work originally included in the bill of quantities and the addition of work as executed in its place. Each variation is considered separately and their net values carried forward to a general summary.
Nominated subcontractors and suppliers accounts are also included in interim valuations as and when the work has been executed on-site or materials supplied.
The elements to be included within an interim certificate can therefore be summarized as:
(2) Measured works.
(3) Valuation of architect's instructions or variations.
(4) Remeasurement of provisional items, prime cost (PC) sums and provisional quantities.
(5) Valuation of nominated subcontractors and suppliers.
(6) Unfixed materials on site and, where allowable, materials off-site.
(7) Fluctuations, where they are allowed within the contract provisions.
Despite the obligations on the architect and the quantity surveyor to produce both interim certificates and valuations, interim valuations are generally carried out together, i.e. between quantity surveyors, so that agreement can be reached between parties before certification.