Payment in Construction

What is the purpose of Advance Payment for contractors?

• Decrease the financial burden of the contractor.

• Assist the contractor to face the difficulty of special mobilization of project.

• Assist the smaller size construction company or the newer able to compete with the mature construction company.

What is the formula for Advance Payment?

• 25% from Builders Works

• 50% from Builders Works

• 10% from Builders Works

What must the contractor submit within 3 months from the date of possession of the site?

What is the advance payment used for by the contractor?

• To purchase or pay for the rental of plant and equipment

• To buy construction materials

• Both of the above

What percentage of the builder's work value is the advance payment for the main contractor?

• 15%

• 20%

• 25%

What is the maximum amount for the advance payment for the main contractor?

• RMB 5,000,000.00

• RMB 10,000,000.00

• RMB 15,000,000.00

What documents must the contractor submit for advance payment certification?

Please calculate advance payment: Contract Sum: RMB 50,000,000.00 Prime Cost Sum: RMB 2,000,000.00 Provisional Sum: RMB 1,500,000.00

In this situation, the Contractor only liable to get RM10,000,000.00, since it is the maximum amount that Contractors are entitled to get paid.

The amount of advance payment for Nominated Sub-Contractor (NSC) is 20% from the sub-contract amount and the maximum amount is RM5 millions.