Common use of Certificate of Payment Clause in Contracts

Certificate of Payment. The contractor shall be entitled under the certificates to be issued by the Architect / consultant to the contractor within 7 working days from the date of certificate to payment from SBI from time to time. The SBI shall recover the statutory recovering other dues including the retention amount from the certificate of payment. Provided always that the issue of any certificate by the Architect / consultant during progress of works or completion shall not have effect as certificate of satisfaction relieve the contractor from his liability under clause. The Architect / consultant shall have power to withhold the certificate if the work or in part thereof is not carried out to their satisfaction. The Architect / consultant may by any certificate make any corrections required previous certificate. The SBI shall modify the certificate of payment as issued by the architect / consultant from time to time while making the payment The contractor shall submit interim bills only after taking actual measurements and properly recorded in the Measurement books The Contractor shall not submit interim bills when the approximate value of work done by him is less than Rs. 5 Lakh. The final bill may be submitted by contractor within a period of one month from the date of virtual completion and Architect / consultant shall issue the certificate of payment within a period of two months. The SBI shall pay the amount within a period of three months from the date of issue of certificate provided there is no dispute in respect of rates and quantities. The contractor shall submit the interim bills in the prescribed format with all details. No advance on materials / plant / machinery or mobilization advance shall be paid in any circumstances. The SBI shall recover the statutory recoveries viz. TDS, retention and other dues, if any, as per contractual provisions. The SBI shall have power to withhold the payment if the work or part thereof is not carried out to their satisfaction.