How To Prepare Interim Payment Application For A Complete Project - Full Project Example
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- เผยแพร่เมื่อ 6 ต.ค. 2024
- In this video I explain interim payment application and how to prepare it monthly for a complete project, including how to update the monthly work done and payment application summary for every month in the project. Interim or monthly payment applications for a project are linked via previous, current and total work done and what is previously paid and in this video I highlight exactly how to do that.
The Interim Payment Application format is explained in this video:
• How To Prepare Payment...
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Thanks for your effort to share your knowledge.. I have a doubt regarding the recovery of advance payment in IP 05. In IP 04, an Amount of AED 864 is remaining in advance payment. Why is it not deducted in IP 05? Pls explain
Because payment number 5 is the statement at completion. Everything should be paid except for the 5% retention
Thank you bro for all the videos. I want to take your course. Please share your contact no
@@saud83mech thank you 🙏. This course is on TH-cam: th-cam.com/video/ZPwkHBAWn6g/w-d-xo.html
@@CEPQS
I have my VIVA Exam test & the problems i had with the IPA were solved.Thank you very much Sir!
You are a life saver... Thanks brother; pls don't stop thinking its getting lesser views.. whoever views it gets the full clear view.. so pls carry on
Thank you brother for your valuable support 🙂. Much appreciated 🙏👍
Dear Mr. Ahmed,
Your sincere explanation about preparation of payment certificate is very outstanding and thank you.
Thank you dear, and wish you all the best 🙏
One of the best teacher i have ever seen in my life. Thank u sir for ur explanation. ❤
Thank you 😊
I am really learning . I intend to encourage all my team members to buy the course
Thank you Evans 🙏. That is very kind of you ❤️
Very good and clear teaching. I like your teaching and explanation. I am worried about my monthly payment certificate. Nobody helps in my office because of those busy moments. Thank you very much for your video and kind heart. Jazakkallah brother. May God protect you and your family and provide you HIS reward agirah.
Let say: The Contractor money in Hand is 7,565 from adv and he claimed a work done of 13,390 which give a total of 20,955 but the client wants to get back the Retention and Recovery of that work done(13,390 - 1,339 - 1,339 = 10,712). so, the new total will be (7,565 + 10,712 = 18,277) which is the cumulative amount, therefor the client will pay the contractor of (18,277 minus Prev 7,567) = 10,712. (i am not very sure if that how the scenario is, in the 1st payment application) thank you very much Sir for your explanation soon.
i believe recovery for advanced payment deducted twice
twice which makes sense (means 20% as it is uniformed on 5 months)
Its right , 10712 is the net amount to certify
hello Sir, this is a great presentation you have been making. but i can see you deducted advance payment recovery twice, thats 1339 twice. I thought the calculation should end at 10712
Same Problem for me Also 🤔
Dear Mr Ahmed, your videos very useful to us. Just keep doing these things. May Almighty bless you and your family
Thanks a lot for your kind support and wish you all the best always inshallah 🙏
Very attractive and enthusiastic presentation
Thanks for this informative teaching.
Thanks Brother your videos are very help ful jizakallah
Ahmed, I found this video very useful and informative
Dear Ahmed can you explain abt the price escalation and price variation by using your payment in detail manner like this video pls
i fully understand your explanation sir, thank you for the effort
Thank you for watching and wish you all the best
Great video sir,
Can you also explain the method and a good invoice format on how to claim / include the following in Interim Invoice :
- Material at site
- Re-measured items (quantity variations of BOQ items)
- Additional Scope of works / Omitted works.
Thanks
Thank you brother 🙏. sure, pleasure to do that.
@@CEPQS
And also sir, How to evaluate these percentage of works?
What's the criteria to decide the weightage of works...
In usual practice of my experience, I have seen that the QS just sends the BOQ file and asks the Project Manager Or Site In charge to put the percentages against each BOQ item
But it would be great to know from you the actual concept of this percentage evaluation.
Thanks sir
Actually there is more than one way of determining the percentage. But the most famous one is:
Let’s assume a building that has 200 apartments. If the plaster work is completed in 100 apartments then completion is 50%. Another example is for wooden doors. They agree some percentages as: 50% shutter , 20% frame 10% installation and 10% touch up, so based on that they determine the total completion % per each door
Simplest method in concept is quantity completed / total quantity x 100 %
Great explanation Sir. I am keep watching your videos. They are very informative and useful
Perfect lecture Sir
Thank you brother 😊
Excellent delivery...can u make a video about revenue recognition & final account preparation... It's 100% on point
Dear Adhil, This is very useful presentation to my work and why you not consider a vat in the interim payment.
Thank you for your shearing. latter please make a video how to prepare or explain from Payment certificate. thank you
Thank you. Will do 👍
Hi, I am taking Construction Economics subject currently and I want to start to learn from scratch with your videos. Do you have those types of videos, let’s say about BOQ, BAFO, basics
THANK YOU AHMED
Thank you 😊
Well explained. Thank you very much.👍
Thank you for watching and for the idea ❤️👍🙏
Thanks a lot Mr Ahmed
Thank you for watching and support 🙏
hello sir Ahmed, thank you for sharing this video sir, but i was hoping to see a final tabulated results like what you did in your ''Payment terms explained for construction industry" video, you showed a sample there too, there are some things that was confusing and summarizing the results in a tabulated form would be very helpful too but overall this is really informative and really very helpful, thank you sir.
Thank you for watching and for the request 🙏. I’ll try to fit in the table in one of the upcoming videos. But for the time being please follow the concept explained in this video not in the payment terms. All the best 👍
very informative... great
Glad you liked it 🙂
Thank you mr. Ahmed for this very informarive video
I subscribed and like
Can yoh please make a video about whatif the tender price is change by variation order how we can adjust that interim payment aplication format where we will add it on our format just an example and also tell us about price variation
I m awaiting ur more videos.ur explaination is excellent. Can u explain about the BOQ cost load in primerva and resources..I have adoubt in primerva about cost .1.BOQ cost to be typing in primerva
Or 2. Separate cost analysis in each activity
Thanks Vinoth. Cost loading on program is also something that we can talk about in the near future. Good idea 👍🙏
Goon job Mr. Ahmed
Thanks a lot for watching and support 👍
please how where you computing the percentages of the completed works on each stage . was it guessing or a way of calculating . thanks
Thanks sir for this video
I didn't understand why did you subtract 7,565 and add 6,226.
Does that not mean you are recovering 20% advance?
The previously paid includes the advance payment and since we deduct 10% from the total work done and we also deduct the provisionally paid, we have to add the remaining advance payment ☺️
I need more explanation on the previous payment,since an agreed percentage has been deducted
Thanks for sharing the video, we have the same method. I just wanted to know about the variation amount payments in intrim bills (running bills). As some of the subcontractors / suppliers have different % of advance and progressive payments some times Main contractors are in such a situation where they end up financeing the job and affect the other projects. suggest what is the solution for this and how do you bill this kind of variations in to the intrim billing applications.
i need explain about bond types : performance bond , retention bond..etc. thanks
Thanks for sharing your knowledge. I have seen all your many videos and almost like all. However I need to ask one thing because It’s confusing when I used the values from your video Terms of Payment and tried to prepare a table with the method shown payment certificate then the answer is not coming same. I hope you understand what I am trying to tell.
Hi ahmed, Not clear why you are adding advance payment remaining. Is there a way we can do this calculation without adding this part?
hello sir
why didnt you deducte retention and advance payment frome the upto date work that has been done ? for the first month ...
Why are you deducting two times of advance payment recovery in each bill? First you deduct the 10% of APR from the work done after that you deduct the total advance payment and add the remaining advance payment. Accordingly you deduct the same advance payment recovery for 2 times from each bill know
That’s why we add the remaining advance payment 🙂
Could u pls share the xl sheet
what if there were some materials on site ?
Sir, why do we have to add again the previously paid and advance payment remaining amount? Can you explain?
Because we always work on the total work done until the moment of evaluation. So if the total work done until today is 60% and the total work done until last month is 45% it means that 15% has been done this month. But because we work on the total work done then the percentage of retention and recovery are calculated based on the total work done and hence you need to deduct whatever was previously paid. But the problem is that the previously paid is already including deductions from previous months. So to avoid deducting again we add the advance payment remaining 😃. Watch the video again for better clarity 😃👍.
@@CEPQS thank you for your response
we could not also see the final presentation of last 5% retention
What are the interview questions for quantity surveyor when he is fresher, mild level, experience in his career level
Where to add the variation and material on site claim in the IP? Please
In IPC-4 there was remaining amount of advance payment that was supposed to be deducted in the final IPC but that did not happened and instead you show AED 0.00. where is the AED 864 advance payment remaining. ??
In the statement at completion you deduct 5% percent only, which means you released 5% retention at completion 🙂👍. This 5% deduction will be released after DLP which is 12 months and when it happens, it means you have paid 100% of contract value. And thank you watching and comment 👍🙏🙂
how do you understand this contract provision regarding recovery of advance payment that says...
The advance payment shall be repaid through percentage deductions in Payment
Certificates in the following manner:
a)deductions shall commence in the Payment Certificate in which the total of all
certified interim payments (excluding the advance payment and deductions and
repayments of retention) exceeds ten per cent (10%) of the Accepted Contract
Amount less Provisional Sums; and
b) deductions shall be made at the amortization rate of one quarter (25%) of the
amount of each Payment Certificate (excluding the advance payment and
deductions and repayments of retention) in the currencies and proportions of the
advance payment, until such time as the advance payment has been repaid.
Means that they will give you 10% in the beginning, and after the total work done exceeds 10% you will start deducting 25% of each application until the advance payment is fully recovered
After that deductions for recovery will stop because advance has been already recovered
thank you. does it mean at early stage there will be zero Advance Payment recovery in the IPCs until such time work exceeds 10%, and at this scheme Advance Payment can be likely recovered before TOC. Is that correct?
Yes correct. If you want to know at which amount it will be fully recovered, use this formula 0.10x = 0.25y, where x is the contract value and y is the total work done amount where advance payment will be fully recovered
Sorry x is contract value - PS
Thank you so much Mr. Ahmed for the continuous effort. I am a bit new to the field of Quantity Surveying in terms of experience and your videos have been helpful.
I have an inquiry though. I see like the 1339 was deducted twice. It was first deducted to get the 10,712 and then again it is what was deducted from the 10,712 since (10,712-1339) is the same as (10,712-7565+6226) and it equals the 9373. Couldn't it just be deducted once?
Thank you for watching and support and wish you best of luck. The reason there are 2 deductions is that we recover the advance payment and we retain an amount for the executed works. These are 2 different things. To learn more about that you need to watch the video “terms of payment explained” you can find it on the channel. Kind regards 👋🏻
Hello Ahmed....what happened of the 864 considered as the remainder of the Advance payment for valuation no 4.....did it just vanish
I don't understand about advance recovery. When I add all values you have recovered it comes 15300 aed. But advance which was given at first was 7565 aed. Can you explain this please? Apart from this explanation was awesome.
The recover of advance will not add up to the advance payment value unless the project doesn’t have retention and this will happen only in the end
Don’t confuse yourself. Just follow the mechanism explained 👍
remember that retention adds up subsequently in every month. we say total retention by end of month 2 and not retention for month 2, such that total retention is seen at month 5. which is 10% of 75560.
In this format the 10% of advance payment is deducted in every month payment application in addition to deduction of total advance payment, which is duplication of deduction. No requirement of 10% advance payment recovery if the total advance payment is deducted and payable advance payment is added.
IPC - 01 AED -1,339
IPC - 02 AED -2,987
IPC - 03 AED -4,273
IPC - 04 AED -6,701
IPC - 05 AED -3,782.50
altogether total is - 19,082.50 but u took into account retention amount of IPC 05 only in final account, so what happend other IPC - 01 ~ IPC - 04 RENTION ?
Always work on the total work done. Deduct the retention and recover the advance from it. Deduct the previously paid And add the advance payment remaining you get your net 👍
@@CEPQS sorry, my question is u deduct some amount in each IPC 1~5. So what about the retention release?
can u reply pls
@@TheHamzaysm retention is released in the end as elaborated in the video🙂. 5% upon completion and 5% after DLP
@@CEPQS yes I understood but u released the retention on final account which u deduct IPC no 5 - 3,782.50. But u didn’t talk about what happened u previously deducted which IPC 01 ~ 04. Kindly explain as much as possible
Sorry Sir, I am really got so confused. in the 1st payment, the work done of 13,390 AED has been deducted with retention and also to deducted 10% recovery, witch give 10,712 AED. from this stage, is it okay to used 10,712 AED as a Net Pay? I couldn't get it why need to deduct again with Previous and to add Advance payment remaining. and also i try to used the method you have in the other video (Payment terms explained for construction industry) and it result the same as 10,712 AED. i have tried many approached but still its give same result as well. Can you please enlighten me Sir? Thank you
What about material on site sir ?? We should add in each bill
You should add it in the summary under the total work done 👍
💓
😊
Can you upload the excel template please
Material on site???
sorry sir, how did you get 17.70% when most the work item are 100% and 50%?....
It depends on the values of items 👍
can u pls send that pdf?
Hello it is really good video but I did not understand why u omit %20 advance payment I think it should be like I wrote below;
IPC.1
During IPC Work Done =13.390
Retention %10 = 1.339
Advance recovery %10=1.339
Net payable amount = 10.712 AED.
IPC.2
During IPC Work Done =16.480
Retention %10 = 1.648
Advance recovery %10=1.648
Net payable amount = 13.184 AED.
IPC.3
During IPC Work Done =12.860
Retention %10 = 1.286
Advance recovery %10=1.286
Net payable amount = 10.288 AED.
IPC.4
During IPC Work Done =24.280
Retention %10 = 2.482
Advance recovery %10=2.482
Net payable amount = 19.424 AED.
IPC.5
During IPC Work Done =8.640
Retention to reach up total %5 we need to add 34% of this IPC = 2.918,50
Advance recovery %10=864
Net payable amount = 10.694,50 AED.
In Total Paid Amount =10.712+13.184+10.288+19.424+10.694,50 = 64.302,50 AED
Total Recovered Advance Payment = 1.339+1.648+1.286+2.452+864 = 7.565 AED
Money will be relased after DLP = 75.650-64.302,50-7.565=3.782,50 AED which is 5% of the total amount of contract 75.650 AED
That’s because you work with current. It is always better to work on the total and deduct the previously paid. Deductions are advance and retention and previously paid. But the problem is previously paid includes the advance payment so you can’t deduct the full amount and that’s why we add the advance payment remaining 😁. All the roads lead to Rome. Just make sure you are not paying more than the earned net value 👍