You have 3 weeks from AFP date to pay your supplier. Your current contract price is below what is required to pay the AFP, it can take 5-6 to raise a CE, - so therefore you are leaving yourself wide open to having to pay interest on the payment. With who does this shortfall lie ?
Hi Keith, firstly I am assuming the following: the contract is NEC4 ECC; the ‘AFP date’ is the assessment date clause 50.1; the Contractor has submitted an application for payment before the assessment date clause 50.2, the amount due is as per clause 50.3, i.e. the PWDD plus/less other amounts and that the PM has made the assessment of the amount due - (which main Option is it?).
Provided the PM has assessed the amount due correctly interest is not applicable just because there is a difference between the amount due and the ‘contract price’, I don’t understand this part of your query.
If you can provide more detail and/or correct any of the above I should be able to answer your query more precisely. Happy to discuss.
Hi Steve,
It would be easier to explain this in person.