Clause 14 — Contract Price and Payment

The payment mechanism: advance, interim payments (IPC), retention and final account.

Applies in: Red BookYellow BookSilver Book

Clause 14 sets out the project cash flow: advance payment (14.2), monthly statements and Interim Payment Certificates — IPC (14.3–14.6), retention, payment timing (14.7) and the Final Statement. Late payment entitles the Contractor to financing charges (14.8) and, if serious, to remedies under Clause 16. A mismatch between payment milestones and real cash flow is a classic tender risk.

Key points

Advance payment and its repayment — 14.2.
The IPC is issued by the Engineer after review — 14.6.
Payment timing — 14.7; financing charges — 14.8.
Use the IPC calculator on this site.

How this works in practice

The payment cycle breaks in two places. First, the application is not in the required form or lacks the supporting documents the contract calls for: the Engineer is entitled not to certify, and the clock restarts. Second, the Employer pays a certified amount late and the Contractor never treats it as a breach, continuing to finance the project itself. FIDIC attaches consequences to non-payment: financing charges, a right to suspend under Sub-Clause 16.1 and, if it persists, a right to terminate. All of them switch on only through notices.

Common traps

The set of documents accompanying an application is never agreed at project start — new requirements and new delays every month.
Particular Conditions stretch the payment period to 90+ days, breaking the Contractor’s cash flow at an unchanged tender price.
Financing charges are neither computed nor claimed: the right exists, but without notice it is never realised.

Versions: 1999 → 2017 → 2022

1999
Clause 14 with a similar payment and certification structure.
2017
Timing, the Statement content and IPC issue were clarified.
2022
No substantive change in the 2022 reprint.

Clause FAQ

Which FIDIC books use Sub-Clause 14?

The clause applies in Red Book, Yellow Book, Silver Book. Particular Conditions may change the standard risk allocation, so always check the project contract.

What if the Engineer certifies less than the amount applied for?

First get the reasons in writing: which items were cut and why. From there it is either a measurement and documentation question — closed with data — or a disagreement on contractual entitlement, which runs through a determination under Sub-Clause 3.7 and, if needed, to the DAAB. Keep submitting applications either way: the continuity of the cycle is itself evidence.

How long must non-payment run before work can be suspended?

The period is set in the contract and the Contract Data, and must be read there rather than from memory. The mechanics are constant: notice of intention to suspend, then the stated period must run, and only then suspension. Suspending without the prior notice becomes a breach in itself and hands the Employer counter-grounds.

Glossary terms

Interim Payment Certificate (IPC) Interim Payment Certificate Provisional Sum Provisional Sum Final Statement Final Statement Pink Book / MDB MDB Harmonised form

Need a review of a specific contract?

Particular Conditions can change this clause. Send the document — we will check the wording and risks.

Request a review

Reference material, not legal advice. Always check your contract and the Particular Conditions.