Progress Payment / Interim Payment Certificate Calculator
Calculate interim progress billing valuations, retention withholdings, advance recovery deductions, and net amount payable under AIA G702 & FIDIC IPC frameworks.
Quick Answer: A progress payment (interim payment certificate) certifies work completed to date minus retention and previous payments; the net payable is that period's amount due.
Payment Application Inputs
Interim Payment Certificate Valuation
Contract Progress Billing Curve vs Contract Sum
Sources & Governing Codes
- AIA Document G702 & G703 Application for Payment: Standard Administrative Forms for Construction Progress Billings View Standard
- FIDIC Red Book Sub-Clauses 14.2, 14.3, & 14.6: Interim Payment Certificate (IPC) valuation & certification guidelines View Standard
- FAR Part 32 Construction Progress Payments: Federal Acquisition Regulation Guidelines for Progress Payments View Standard
Frequently Asked Questions (FAQ)
What is an Interim Payment Certificate (IPC)?
An Interim Payment Certificate (IPC) is a formal document issued by the supervising engineer or project manager certifying the net amount due to the contractor for work executed during a specific billing period, after deducting retention, advance payment recoveries, and previous payments.
What is the AIA G702 / G703 form?
In the United States, AIA Document G702 (Application and Certificate for Payment) and G703 (Continuation Sheet / Schedule of Values) are standard administrative forms published by the American Institute of Architects for contractors to submit progress billings.
How is advance payment recovered in an IPC?
Under FIDIC Sub-Clause 14.2, an advance mobilization payment is amortized through percentage deductions (typically 10% to 20%) applied to the gross value of each certified IPC once cumulative progress reaches a contractually specified threshold.
Why are materials stored on site included in progress billings?
Contracts often allow contractors to bill for un-fixed materials delivered to the jobsite (with proof of ownership and insurance) to assist contractor cashflow for long-lead structural items like rebar, structural steel, or mechanical plant.
When is an IPC due for payment under FIDIC Sub-Clause 14.7?
Under FIDIC Red Book Sub-Clause 14.7, the employer must pay the certified IPC amount within 56 days after the engineer receives the contractor's statement and supporting documents, unless otherwise agreed.
What is a Schedule of Values (SOV)?
A Schedule of Values is a detailed cost breakdown of the total contract price allocated across specific trade work items, serving as the baseline for evaluating percentage completion on monthly payment applications.
How does retention interact with progress payment certification?
Retention is deducted directly from the gross value of certified work on each progress payment application until the cumulative retention cap is reached, reducing the immediate net payment to the contractor.
What happens if an interim payment certificate is under-certified?
If the engineer or architect reduces the requested amount, the contractor can submit additional documentation or dispute the deduction. FIDIC Sub-Clause 14.6 allows the engineer to correct any previous certificate in subsequent IPCs.
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