On an NEC3 Professional Services Contract, should a Consultant submit a monthly Application for Payment, which would then be assessed/certified by the Project Manager, or does the Consultant raise an invoice which details the hours booked and the total cost of those?
The contract leans towards the standard Application for Payment process, but our Consultants at the moment are submitting invoices based on the hours that we have approved on an electronic booking system.
Any clarification on the correct and most efficient way to deal with this would be appreciated.
I’m not sure what you mean when you say: “The contract leans towards the standard Application for Payment process…”
The standard form of the NEC3 PSC states that the Consultant assesses the amount due and submits an invoice at each assessment date (clause 50.1). If your contract contains amendments by way of z-clauses etc. then you should be looking at those amendments.
Also, strictly speaking, in the standard form you don’t have a Project Manager but only the Employer; if secondary Option X10 is chosen, you have the Employer’s Agent who can act on behalf of the Employer as set out in the Contract Data (and can be replaced).
I hope the above is helpful.
Thank you- that makes perfect sense. I have just looked at the NEC3 PSC contract, and clauses 50.1 and 50.2 have been heavily amended to request an Application for Payment, as opposed to the submission of an invoice (not sure why- as I inherited this set up!)