Consultancy & Contracts · Contractor guide
Contractor payment stuck? What to do next.
Your work is done and measured, but the interim payment (IPC) or running bill has not been paid, or has been cut without a clear reason. Most contracts, including FIDIC-based ones, set time limits for certifying and paying bills and give the contractor rights when payment is late. Those rights usually depend on giving written notice on time and keeping proper records.
Common causes
Why it happens
Bill not certified
The Engineer or consultant has not certified the measured work, or has certified less than was claimed.
Funds not released
The department or client says the budget or funds have not been released.
Disputed measurements
Quantities in the bill do not match the department's measurement book or site records.
Missing paperwork
Bill format, supporting documents or approvals are incomplete, so the bill is returned.
Deductions and retention
Large deductions, withheld retention or penalties without written justification.
Variation work unpaid
Extra work done on instruction, but not yet approved as a variation.
What you can do
Practical steps
- Check your contract for the payment period and what it says about late payment.
- Write to the Engineer / client asking, in writing, for the status of the bill and the reason for any delay or cut.
- Give formal notice of the late payment within the time your contract requires. Late notice can weaken or lose a claim.
- Keep working records: daily diary, measurement sheets, letters, and site photos with dates.
- If the contract allows it, consider your options for late-payment charges, slowing down or suspension only after advice. Wrong steps can put you in breach.
- If talks fail, move to the dispute route in your contract (engineer's decision, DAAB, arbitration or courts).
Documents
What to gather
- Signed contract and bidding documents (conditions, BOQ, specifications)
- Submitted bills / IPCs with dates of submission
- Measurement book entries and joint measurement records
- All letters, emails and instructions from the Engineer or client
- Variation orders and site instructions
- Bank guarantee, retention and deduction details
- Site diary, progress reports and dated photos
How AHS helps
How we can help
We read your contract and records, work out what is due and on what basis, draft the notices and the payment claim, and support you in meetings and through the dispute route in your contract.
This page is general information, not legal advice. Every contract is different, and no outcome can be guaranteed.
FAQ
Frequently asked questions
My IPC is late. Can I claim anything extra?
Many contracts, including FIDIC-based ones, allow financing or late-payment charges when certified amounts are paid late. Whether you can claim depends on your exact contract terms and whether proper notice was given.
Can I stop work if I am not paid?
Some contracts allow the contractor to slow down or suspend work after notice when payment is not made. Doing this without following the contract can put you in breach, so get advice first.
The department says funds are not released. Does that cancel my right to payment?
Usually not by itself. Lack of funds on the client side does not normally remove a contractor's contractual right to be paid, but the remedies depend on your contract.
Can you guarantee I will get paid?
No. No honest consultant can guarantee an outcome. We help you build the strongest possible case with your documents.
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