Construction Contracts: Questions and Answers – Episode 15: Valuation and Payment

In this episode, we dive into the critical aspects of valuation and payment within construction contracts. We discuss how interim valuations are conducted, the methods used for assessing the value of completed work, and the certification process for payments. Key topics include understanding contract clauses related to payment schedules, the contractor’s right to payment, and the employer’s right to withhold or deduct payment under certain conditions. This episode also covers issues such as final accounts, retention sums, and the timing of payments, along with practical guidance on how disputes over valuations and payments are resolved. Through real-life scenarios, we examine best practices for maintaining smooth payment processes throughout the lifecycle of a construction project.