8 ct8 art qap pfa payment process and final account

If the Project Manager ARTELIA considers that the amount invoiced does not correspond to services actually performed, he may:  Or request an amended invoice from the Consultant corresp

PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8

P R O J E C T M A N A G E M E N T

QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT

ARTELIA VIETNAM

Fl.11, HQ Building 193 C3 Bà Triệu Ha Noi

Tel.: +84 (04) 3734 7260

REVISION COMMENTS DATE

02

03

LƯU CHUYỂN TỚI

Consultants/ Contractors 

CONTENTS

1 PAYMENT PROCESS OF CONSULTANTS 1

2 CONTRACTOR’S PAYMENT PROCESS: GENERAL PROCEDURE 3 2.1 DIFFERENT TYPES OF INVOICES 3

3 PROCESSING AND APPROVAL OF VALUATION CERTIFICATE _ 5

4 FINAL ACCOUNT _ 6 4.1 INTRODUCTION _ 6

4.3 FINAL ACCOUNT STATEMENT _ 6

1 PAYMENT PROCESS OF CONSULTANTS

The consultants covered by this procedure are:

 Designers (including Architect)

 Quality Control (as per Circular 11 requirements)

 Provides for facility training of all users prior to handover

 Any other consultants that are required for the project, appointed by the Owner (e.g independent surveyor, design review etc…)

These consultants have a direct contract with the Owner and their invoice shall be addressed to him Invoices shall indicate as a minimum:

 Total contractual amount

 Amount of agreed variations (if any)

 Cumulative amount invoiced corresponding to services performed so far

 Amount already paid

 Invoiced amount (instalment)

 VAT

 Invoiced amount with VAT

If the Project Manager (ARTELIA) considers that the amount invoiced does not correspond to services actually performed, he may:

 Or request an amended invoice from the Consultant corresponding to services he evaluates

as actually performed

In both cases, he informs the Owner about his decision within 7 days following receipt of the

invoice The Owner shall revert to the Consultant informing him about the situation

The following chart summarizes the approval process workflow with the expected dates, starting from D-day of receipt of the invoice

A copy of approved invoice is kept in the site office file together with any correspondence related with the approval process (if any)

On behalf of Client , Artelia receive invoice from consultants,

contractor

Register invoice and forward

it to PM (ARTELIA)/

PM (ARTELIA) checks if works have been performed according

to invoice

Amount invoiced conform

to work performed and according to contract

agreement

PM (ARTELIA) signs payment request and transmit it to Consultant or Contractor Project

Director for signature

Approved invoice transmitted to Contractor, Consultant’a financial department for payment

process

Contractor, Consultant

receive payment

Yes

Not accepted but can be amended

Not accepted/

KhôNong được chấp thuận

Invoice refused

Contractor and consultant notified by

PM or PA

PM (ARTELIA) request consultant or Contractor to

amend invoice accordingly

Consultant or Contractor prepares and submits a

revised invoice

Not accepted

2 CONTRACTOR’S PAYMENT PROCESS:

GENERAL PROCEDURE

Depending on the country and the contract, the contractor may be paid on the basis of the following

documents:

 Contractor’s invoice (for spot orders)

 Instalments (for contracts lasting more than one month) submitted by the contractor

 Payment proposal or Valuation Certificate prepared by the Project Management and agreed with the Contractor

As a general rule, all invoicing documents shall be calculated with cumulative amounts

For instalment or valuation certificates, the amount to pay is fixed either according to a payment

schedule or according to the progress of the works actually performed

In the latter case, the task breakdown described in the contractual documents is not always adapted to assess the actual progress value; it is then necessary to prepare another breakdown,

split by trade, task and location taking into account:

 The scope of works (to get the comprehensive list of tasks)

 The detailed contractor’s time schedule (to get the sequence of the tasks)

 The schedule of rates (to get the value of each task)

A task is a building element (or part of it) that has be completed and shall include the design studies, site preparation (equipment, supplies, manufacturing), the carrying out of the work with its quality control, cleaning and commissioning (for technical trades)

To make sure not to “overpay” a contractor, it is advised to foresee a significant percentage of the contract amount to make sure that all works will be carried out properly and that all as-built documents are delivered

 ARTELIA has developed a model of valuation certificate, called “payment proposal” taking into

account two categories of information:

 Information regarding the progress of the works (based on the contract or on the variation orders), as well as specific supplies or manufacturing if the case occurs

 Information regarding complement or deduction as per contractual agreement between the Client and the contractor such as:

o Advance payment (for manufacturing, supply…)

o Price revision/ Price revision

o Retention money (warranty)

o Possible penalties or liquidated damages

o Common expenses

Any advance payment shall be subject to the delivery by the contractor of the two following documents:

 A bank guarantee equal to the amount of the advance

 An invoice prepared either by the contractor or by ARTELIA (Valuation certificate) This advance payment is paid back every month either as a fixed amount or as a percentage of the amount invoiced

The valuation certificate form is shown in Appendix1 It shall show the cumulative amount, the

amount already paid (until previous month) and the amount to pay this month (by subtracting the first column from the second one) The form is to be adapted in function of the project’s needs and

the country’s legal requirements

Prepared by the Project Management, it shall be endorsed by the Contractor (identified at the top

of the form) and signed by the Client (or his representative)

3 PROCESSING AND APPROVAL OF VALUATION

CERTIFICATE

Valuation of tasks to prepare from BOQ

Pre-check of contractor’s statement by ARTELIA (according to expected progress at month end)

Contractor submit statement (6 copies) to ARTELIA

Checking of statement by ARTELIA according to work progress and valuation of tasks – Review of variations

Checking by Client’s QS

OK?

Yes

ARTELIA issue the interim payment certificate with Contractor Project Director’s endorsement and submit

it for payment to Contractor

Handling of proposal for payment by Contractor’s

financial department

Payment to contractor

No

4 FINAL ACCOUNT

The payment of final account corresponds to the common agreement between the parties (the Owner and the contractor) on all services and works actually performed by the Contractor and their remuneration as per contract

This payment is distinct from the acceptance of the Works: the Owner cannot refuse to accept the Works for the only reason there is no agreement on their account

The contractor shall prepare its bill for final account within the timeframe indicated in its contract (in principle 60 days after the preliminary acceptance) with the following breakdown:

 Contractual lump sum

 Scope modifications (add or omit) that have been ordered by the Owner (change or variation orders)

 Price revision (of lump sum and scope modification) – if the case applies

This bill is submitted to the Project Management for review

The Project Management checks the bills received for final account as they come, and checks in particular that:

 The lump sum corresponds to the agreed contract amount

 The scope modifications are all justified by the issuance of a notice to proceed or a variation order signed by the Client

 The calculation of the price revision (if any) is correct

Following this verification, the Project Management prepares a final account statement by considering the three positions mentioned above and possibly adding bonuses or omitting penalties

The final account statement together with the bill issued by the contractor is forwarded to the Client (in principle not later than 45 days after receipt of final account bill) The Client notifies the Contractor of receipt This notification is either sent by registered mail or preferably discussed directly with the contractor before signing it off

The contractual document between the Client and the contractor shall foresee:

 The case if the contractor does not submit on time its final account bill (in this case, it should

be prepared by the Project Management at its expenses)

 The timeframe for the contractor to accept or deny the final account statement notified by the Client

4.4 VALUATION CERTIFICATION FOR FINAL ACCOUNT

Usually, the agreement on the final account statement does not allow calculating completely the

related valuation certificate The three following items should also be taken into consideration

 Retention for warranty: if the contractor has provided a performance bond, and that the amount of that bond does not cover the retention amount, it is advised to request the contractor a complementary bond

 Common expenses chargeable to the contractor

 Other possible deductions

oOo

ANNEX 1

INTERIM PAYMENT CHART & CERTIFICATE

Receive application for interim payment from Contractor Contractor

end of each month - 25th

Check Interim Payment submitted by Contractors including Inspection documents,Test Plans (ITPs), site delivery dockets, signed VO's, QA/

QC docs…

Artelia 2 day (s)

Site Valuation/ Agreement ; defects,

Prepare payment certificate Artelia Base on Contract

Send draft IPC to Employer for review/

Issue Interim Payment Certificate Artelia 1 day (s)

Contractor agreement/ sign Contractor 1 day (s)

Employer agreement/ sign Employer 2 day (s)

Prepare and submit Invoice to Employer Accountant Contractor 1 day (s)

FLOW CHART - INTERIM PAYMENT CLAIM/ CERTIFICATE

Steps

2

3

4

6

7

8

9

10 1

5

Steps Actions / tasks Action by Approx Times -

depending on VO amount $ scale

Artelia issues SI to contractor and Artelia Artelia Artelia

Contractor

If Contractor believes SI does have cost implication

- SI

- Shop drawing approved ( if need)/ on contractor allow (old versus

new)

- Schedule of VO ( if need)

- Related document

- Value of VO

if not, answer to Contractor and Client / Artelia

if yes, VO is valid.

Artelia check/assess VO

- Check quantity with contractor

- Check rate with contractor

Artelia 1 day

Client/ Contractor check and agree Contractor 1 day

If not, arrange meeting to finalize VO Client/

contractor/Artelia yes, agreed by all

Contractor sign 4 sets VO approved Contractor 1 day

Artelia sign for Certification Artelia 1 day

Inclusion in next IPC - then payment Contractor

Artelia issues the VO assessment to Client/ contractor

Artelia check and confirm if VO is valid in accordance contract Artelia / Contractor 2 days

Artelia 11 days

FLOW CHART - VARIATION

Contractor to check SI If no cost implication, contractor to proceed

with work immediately

Contractor shall submit notification of VO within 3 days including

estimated cost to be followed up by the full VO submission including

the following asap:

Contractor

3

5

2

4

6

7

8

9

1

11

10

EMPLOYER/ CHỦ ĐẦU TƯ CÔNG TY CP ĐT BẤT ĐỘNG SẢN MỸ ĐÌNH Date: 10-Sep-17

PROJECT MANAGER/ BAN QLDAARTELIA VIETNAM

CONTRACTOR/ NHÀ THẦU …….

Contract No./ Hợp đồng số : … Ref/ Số tham chiếu: CT8.ART…… IPC No… A 42,236,700,000 B

-C 42,236,700,000 D 30% 12,671,010,000 E

-F

-G

-H

-I

-J

-K 12,671,010,000 L %

-M %

-N

-O

-P

-Q VAT Included 12,671,010,000 R S 12,671,010,000 Reference: Tham chiếu Attachment Đính kèm Validated by Artelia Prepared by Artelia Xác nhận tính hợp lệ bởi Artelia Chuẩn bị bởi Artelia … Chức vụ… Hà Nội, ngày tháng năm 201x Hà Nội, ngày tháng năm 201x Chấp thuận bởi chủ đầu tư Chấp thuận bởi nhà thầu WITHHELD AMOUNT FOR QUALITY PROOF IF ANY GIÁ TRỊ TẠM GIỮ CHỜ CHỨNG MINH CHẤT LƯỢNG NẾU CÓ FINES (INCLUDING VAT) CÁC KHOẢN PHẠT HỢP ĐỒNG SAU THUẾ TOTAL AMOUNT DUE TO DATE AFTER DEDUCTIONS (K+L+M+N+O+P) TỔNG GIÁ TRỊ ĐẾN NGÀY SAU KHI ĐÃ GIẢM TRỪ CÁC KHOẢN SAU THUẾ (K+L+M+N+O+P) LESS AMOUNT CERTIFIED PREVIOUSLY KHẤU TRỪ GIÁ TRỊ SAU THUẾ ĐÃ XÁC NHẬN LẦN TRƯỚC TOTAL AMOUNT FOR THIS PAYMENT (Q+R) VAT Included TỔNG GIÁ TRỊ CĐT PHẢI THANH TOÁN CHO NHÀ THẦU KỲ NÀY (Q+R) In words: … Approved by owner Agreed by contractor THE CONTRACTOR'S DEDUCTIBLE VAT INCLUDED (ELECTRICITY, WATER, SANITATION )

CÁC KHOẢN KHẤU TRỪ CỦA NHÀ THẦU BAO GỒM THUẾ GIÁ TRỊ GIA TĂNG (TIỀN ĐIỆN, NƯỚC, VỆ SINH )

ANTICIPATED CONTRACT SUM (A+B) TỔNG GIÁ TRỊ HỢP ĐỒNG (A+B) ADVANCE PAYMENT TẠM ỨNG ESTIMATED VALUE OF SERVICES EXECUTED TO DATE (Cumulative) CÔNG VIỆC, DỊCH VỤ ĐÃ HOÀN THÀNH TỚI NAY (Lũy kế) VARIATION ORDERS GIÁ TRỊ PHÁT SINH MATERIAL ONSITE TẠM ỨNG VẬT TƯ TRÊN CÔNG TRƯỜNG TOTAL VALUE OF WORKS (E+F+G) TỔNG GIÁ TRỊ THỰC HIỆN (E+F+G) VAT 10% (H*10%) THUẾ GIÁ TRỊ GIA TĂNG 10% (H*10%) TOTAL VALUE OF WORKS AFTER TAX (H+I) TỔNG GIÁ TRỊ THỰC HIỆN SAU THUẾ (H+I) TOTAL AMOUNT INCLUDING ADVANCE PAYMENT TO DATE (D+J) VAT Included TỔNG GIÁ TRỊ BAO GỒM TIỀN TẠM ỨNG SAU THUẾ (D+J) Bao gồm thuế LESS RETENTION TIỀN GIỮ LẠI % LESS ADVANCE PAYMENT (J*%) KHẤU TRỪ TIỀN TẠM ỨNG(J*%) VARIATIONS (CONTRACT ADDENDUM) / PHÁT SINH (PHỤ LỤC HĐ) DỰ ÁN KHU NHÀ Ở CAO TẦNG – DỊCH VỤ Ô ĐẤT CT8 My Dinh, Hanoi, Vietnam PACKAGE NAME TÊN GÓI THẦU: … INTERIM PAYMENT CERTIFICATE No

CHỨNG CHỈ THANH TOÁN TẠM SỐ …

CONTRACT PRICE (VAT Included)

GIÁ TRỊ HỢP ĐỒNG (Bao gồm thuế)