PlanoveraFree Interim Payment Certificate (IPC) Template
An Interim Payment Certificate (IPC) is the document an Engineer or Employer's Representative issues to certify the value of work a contractor has completed to date, so the contractor can be paid for it. Under FIDIC-style contracts (Sub-Clause 14.6), the Engineer values the work executed against the Bill of Quantities, deducts retention, any advance-payment recovery and applicable taxes, then certifies the net amount due — usually monthly. Below is a worked sample, followed by a step-by-step guide to preparing one.
| Item | Description | |||||
|---|---|---|---|---|---|---|
| A — Roadworks | ||||||
| A.1 | Granular sub-base, 150 mm | |||||
| A.2 | Asphalt wearing course, 70 mm | |||||
| Subtotal — Roadworks | 78,820.00 | |||||
| B — Drainage | ||||||
| B.1 | Precast concrete culvert pipe, 600 mm dia. | |||||
| B.2 | Catch basin, type 2 | |||||
| Subtotal — Drainage | 12,990.00 | |||||
| Gross value of work executed to date | 91,810.00 | |||||
How to prepare an interim payment certificate
- 1Start from the contract Bill of Quantities — the original quantities and agreed rates for every item.
- 2Measure or agree the cumulative quantity of each item executed to date (the Engineer's measurement, or the contractor's claim subject to the Engineer's review).
- 3Value the work: multiply cumulative quantity by the BOQ rate for each item, then sum to a gross valuation.
- 4Deduct retention at the percentage stated in the contract (commonly 5–10%, often capped at a maximum retention amount).
- 5Deduct recovery of any advance payment, per the recovery schedule or percentage agreed in the contract.
- 6Deduct withholding tax or other statutory deductions if applicable in the contract jurisdiction.
- 7Subtract the amount already certified in the previous IPC — the result is the net amount due for this period.
- 8The Engineer reviews and signs the certificate, then issues it to the Employer and Contractor within the contractual period (FIDIC Sub-Clause 14.6 typically allows 28 days from application).
Frequently asked questions
- What is an Interim Payment Certificate (IPC)?
- An IPC is a periodic certificate — usually monthly — that states the value of work a contractor has completed to date and the net amount currently due to be paid, after deductions like retention and advance recovery.
- Who issues an IPC?
- Under FIDIC-style contracts, the Engineer (or the Employer's Representative) values the work and issues the certificate, based on the contractor's application/claim and the Engineer's own measurement or review.
- How is an IPC different from a Final Payment Certificate?
- An IPC is interim — it certifies cumulative progress and is superseded by the next one. A Final Payment Certificate is issued once after the defects liability period ends, settling the full final account.
- What retention percentage is typical?
- It varies by contract, but 5–10% of certified value is common, often with a maximum retention cap (e.g. 2.5–5% of the contract price) and partial release at practical completion.
- Can an interim payment certificate be generated automatically?
- Yes — if your BOQ and cumulative quantities are already in a system, the gross valuation, retention, advance recovery and net amount due can all be calculated automatically rather than rebuilt in a spreadsheet every month.
Stop rebuilding this certificate in Excel every month
Planovera builds your IPC straight from your project's Bill of Quantities. Enter cumulative quantities and it calculates the gross valuation, retention, advance recovery, withholding tax and net amount due — and keeps every certificate in one place.
No credit card required