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ARTICLE · 24 FEBRUARY 2022

Key Lessons Every Contractor Must Know About Payment Applications In Construction Projects

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When contractors are engaged in construction projects, the employer undertakes to make payments to the contractor in instalments and through the mechanisms provided under their contract.

NigeriaReal Estate and Construction
Osinachi Nwandem
Osinachi Nwandem
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When contractors are engaged in construction projects, the employer undertakes to make payments to the contractor in instalments and through the mechanisms provided under their contract. One important mechanism for payment in a construction contract is the contractor's payment application.

The payment application is important as it assists the employer in finding out the value of work done and the amount due to the contractor. Typically, the payment application will show the total value of work completed and the contractor's amount. Usually, the contract will require that the contractor submits its payment application every month or after the conclusion of agreed milestones.

Like every construction contract, the FIDIC Suite of Contracts 20171 and the General Conditions of Contract for the Procurement of Works in Nigeria, 2011 (the GCC) have provisions governing the contractor's payment application.

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