Fit-out contracts are normally paid in instalments against work completed, measured at agreed intervals, with a percentage withheld as retention until the works are complete and the defects period has expired.
A percentage paid on signing to fund mobilisation, long-lead materials and workshop fabrication, usually recovered proportionally from later valuations and often secured by a bank guarantee.
Monthly, or at agreed milestones, measuring work completed and materials on site. The valuation date, the certification period and the payment period should each be stated as a number of days.
A percentage — commonly 5 to 10 per cent — withheld from each valuation, capped at a stated limit, to secure completion and the rectification of defects.
The point at which the works are usable and the client takes possession. Typically half the retention is released here, and the defects-liability period begins.
Commonly 12 months, during which the contractor returns to rectify defects. The remaining retention secures that obligation.
Measured work, variations and claims reconciled into a final figure, and the balance of retention released at the end of the defects period.
A percentage of each payment withheld by the client as security for completion and defect rectification. Half is usually released at practical completion and the balance at the end of the defects-liability period.
Commonly 5 to 10 per cent of each valuation, capped at a stated percentage of the contract sum. Above 10 per cent, contractors price the cost of financing it back into the tender.
The period after practical completion — usually 12 months — during which the contractor is obliged to return and rectify defects that appear. It is not a warranty against wear, and it does not extend the manufacturer's product warranties.
Because fabrication and long-lead materials are bought before the first valuation is certified. A contractor with no advance either finances the job themselves and prices it in, or slows procurement to match cash.
The valuation interval, the certification period, the payment period, the retention percentage and cap, the advance-payment amount and its recovery, and what documents must accompany an application. All of it in days and percentages, not adjectives.
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