Payment in Construction

What is the purpose of Advance Payment for contractors?

• Decrease the financial burden of the contractor.

• Assist the contractor to face the difficulty of special mobilization of project.

• Assist the smaller size construction company or the newer able to compete with the mature construction company.

What is the formula for Advance Payment?

• 25% from Builders Works

• 50% from Builders Works

• 10% from Builders Works

What must the contractor submit within 3 months from the date of possession of the site?

Evaluate responses using AI:

OFF

What is the advance payment used for by the contractor?

• To purchase or pay for the rental of plant and equipment

• To buy construction materials

• Both of the above

What percentage of the builder's work value is the advance payment for the main contractor?

• 15%

• 20%

• 25%

What is the maximum amount for the advance payment for the main contractor?

• RMB 5,000,000.00

• RMB 10,000,000.00

• RMB 15,000,000.00

What documents must the contractor submit for advance payment certification?

Evaluate responses using AI:

OFF

Please calculate advance payment: Contract Sum: RMB 50,000,000.00 Prime Cost Sum: RMB 2,000,000.00 Provisional Sum: RMB 1,500,000.00

Evaluate responses using AI:

OFF

In this situation, the Contractor only liable to get RM10,000,000.00, since it is the maximum amount that Contractors are entitled to get paid.

Evaluate responses using AI:

OFF

The amount of advance payment for Nominated Sub-Contractor (NSC) is 20% from the sub-contract amount and the maximum amount is RM5 millions.

Evaluate responses using AI:

OFF