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Construction Payment Contract
"I need a Construction Payment Contract for a large-scale commercial development project in Dubai, with monthly milestone payments and 10% retention, including provisions for advance payment of 15% against a bank guarantee, to commence in March 2025."
1. Parties: Identification of the parties entering into the agreement, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, including reference to the main construction contract and purpose of this payment agreement
3. Definitions: Definitions of key terms used throughout the agreement, including payment-related terminology
4. Contract Price: Total contract value, currency, and breakdown of payment components
5. Payment Terms: Detailed payment structure, including milestone payments, payment cycles, and payment procedures
6. Payment Certificates: Process for issuing and certifying payment certificates, including timeline and approval requirements
7. Retention: Details of retention money, including percentage, release conditions, and timing
8. Default and Remedies: Consequences of payment defaults and available remedies for both parties
9. Dispute Resolution: Procedures for resolving payment-related disputes, including mediation and arbitration provisions
10. Governing Law: Specification of UAE law as governing law and relevant jurisdiction
11. Notices: Process and requirements for serving payment-related notices and communications
12. Term and Termination: Duration of the agreement and circumstances allowing for termination
1. Advance Payment: Terms for advance payment, including bank guarantees and recovery mechanism - include when advance payment is part of the agreement
2. Performance Security: Requirements for performance bonds or bank guarantees - include for high-value contracts
3. VAT and Taxation: Specific provisions for handling VAT and other applicable taxes - include when tax implications need specific attention
4. Interest on Late Payments: Provisions for charging interest on delayed payments - include when parties agree to interest charges
5. Set-off Rights: Rights to set off payments against other obligations - include when multiple contracts exist between parties
6. Payment Currency and Exchange: Provisions for handling multiple currencies and exchange rates - include for international contracts
7. Early Payment Incentives: Terms for early payment discounts or incentives - include when early payment schemes are agreed
8. Force Majeure Impact on Payments: Specific provisions for payment obligations during force majeure events - include when required by project circumstances
1. Schedule 1 - Payment Schedule: Detailed breakdown of payment milestones, amounts, and due dates
2. Schedule 2 - Payment Certificate Format: Template and requirements for payment certificates
3. Schedule 3 - Bank Details: Banking information for all parties involved in payments
4. Schedule 4 - Project Milestones: Construction milestones linked to payment schedule
5. Schedule 5 - Rate Schedule: Breakdown of rates for various components of work
6. Appendix A - Forms of Guarantees: Templates for various guarantees required under the contract
7. Appendix B - Notice Requirements: Detailed requirements for payment-related notices
8. Appendix C - Variation Rate Sheet: Pre-agreed rates for potential variations to the work
Authors
Application for Payment
Bank Guarantee
Contract Price
Contract Sum
Day
Defects Liability Period
Due Date
Employer
Final Account
Final Certificate
Final Payment
Interim Payment
Interim Payment Certificate
Main Contract
Material Breach
Milestone Payment
Notice
Payment Certificate
Payment Schedule
Performance Security
Project
Retention
Retention Bond
Site
Subcontractor
Substantial Completion
Taking-Over Certificate
VAT
Variation
Works
Working Day
Engineer
Practical Completion
Progress Payment
Payment Due Date
Default Interest Rate
Guarantee
Invoice
Lien
Milestone
Payment Bond
Project Manager
Quantity Surveyor
Retention Money
Security
Statement of Final Account
Termination Date
Time for Payment
Withholding Notice
Contract Price
Payment Terms
Advance Payment
Interim Payments
Final Payment
Retention
Payment Certificates
Payment Security
Performance Security
Default and Remedies
Set-off Rights
Variations
Time for Payment
Interest on Late Payment
Taxation
Bank Guarantees
Force Majeure
Suspension Rights
Termination
Dispute Resolution
Governing Law
Notices
Assignment
Subcontracting
Confidentiality
Entire Agreement
Severability
Amendments
Third Party Rights
Waiver
Payment Applications
Payment Documentation
Milestones
Certification Process
Currency and Exchange
VAT
Insurance
Bonds and Securities
Default Interest
Early Payment Discounts
Construction
Real Estate Development
Infrastructure Development
Commercial Property
Residential Development
Industrial Construction
Government Infrastructure
Healthcare Construction
Educational Facilities
Hospitality Development
Retail Development
Legal
Finance
Commercial
Project Management
Construction
Contracts Administration
Risk Management
Procurement
Operations
Quality Control
Construction Manager
Project Director
Contract Manager
Commercial Director
Finance Manager
Quantity Surveyor
Project Manager
Legal Counsel
Chief Financial Officer
Construction Director
Claims Manager
Procurement Manager
Commercial Manager
Risk Manager
Cost Controller
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