A payment application needs a contractual calculation and evidence supporting it. Better records can help resolve a query, but they do not guarantee that the amount applied for equals the amount due.
Use the selected option
The Project Manager assesses the amount due at each assessment date. The calculation starts with Price for Work Done to Date, then accounts for other amounts payable to, payable by or retained from the Contractor under the contract.
Price for Work Done to Date differs by main option. Option A uses completed activities or groups of activities under its definition; Option B uses the bill of quantities and its measurement provisions. Options C, D and E use Defined Cost and Fee, including the forecast element for amounts expected to be paid before the next assessment date. Do not describe these options as reimbursement of only invoices already paid. Option F has its own management-contract definitions and requires a separate check.
Defined Cost is a contractual term. An amount spent is not automatically recoverable, and the applicable cost components, Fee and Disallowed cost provisions must be considered. Routine payment and the assessment of a compensation event are different calculations.
Meet the application and certification requirements
Submit the application before the assessment date, in the required form and with details of the assessment. Treat this as a contractual requirement, not an optional courtesy. Missing the application deadline can affect the amount due for that assessment; check the applicable wording rather than assume the previous process continues unchanged.
Under the standard ECC, the Project Manager certifies payment within one week of the assessment date. The payment date, any statutory notice regime and the consequences of an inadequate notice are separate questions. Where Y(UK)2 applies, read it alongside the applicable legislation and amendments. Do not treat every UK project as having identical notice dates.
Make the calculation reviewable
- Identify the assessment date, period and selected option.
- Show the basis of each amount and any forecast separately.
- Link measured work, completed activities or cost entries to the evidence relevant to that option.
- Explain adjustments, amounts previously assessed and disputed items.
- Reconcile differences between payroll, subcontract assessments, hire records and site records.
A diary may explain what happened on site. It does not replace all accounts, proof of cost or measurement records. Likewise, a timesheet is useful evidence even if additional allocation information is needed to explain deployment.
Respond to a query precisely
Ask which amount is disputed, which contractual provision applies and what information is missing. Supply the evidence relevant to that question. A cost can be evidenced yet excluded, or eligible in principle yet inadequately substantiated. Keep those issues distinct.
For an illustrative example, suppose an application includes £180,000 of queried labour. Matching timesheets, payroll and site records may resolve part of the query, while another part may concern the applicable cost definition. There is no predetermined recovery percentage: the result depends on the facts and contract.
Keep assessment and dispute procedures separate
A disagreement can arise during the assessment process. Strong records may narrow it, but interpretation, valuation and notice issues can remain. Follow the applicable correction and dispute procedures and their deadlines. A payment-notice regime is not itself a mandatory escalation ladder through which every dispute must pass.
Use Gather’s NEC4 payment guide and records checklist to structure the review.
Further reading
Check the NEC form, edition, incorporated amendments, selected options, Contract Data, Scope and Z clauses used on your project.
Gather helps teams organise site evidence for commercial review. Explore Gather’s site records.
Key Takeaways
- Use the selected option’s Price for Work Done to Date definition.
- Include the relevant forecast element for Options C–E.
- Submit the application before the assessment date.
- Records support assessment but cannot guarantee entitlement.
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