On an NEC4 Option C contract, our Contractor did not submit their application for payment last period so the assessment was made as per Clause 50.4. For the latest period, an application for payment has been submitted but has highlighted the shortfall which resulted from applying this clause. Do we resolve this within the current assessment and would this entitle them to interest payments?
The current payment assessment is made in the usual way based upon the cumulative amount of PWDD, which in this instance would likely produce an amount due equivalent to the value of ‘2 payments’.
If the preceding payment assessment was made in accordance with sub-clause 50.4 then this is correct and no adjustment needs to be made, so sub-clause 51.3 (interest) would not apply.