Cost and Contracts
Progress Payments and Final Accounts
We prepare interim and final progress payments, price adjustment calculations and the final account file in line with the contract and the legislation on behalf of the contractor, and check them on behalf of the contracting authority.
Progress payments and the final account file
A progress payment (interim payment certificate) is the document in which the work a contractor has done in a given period is measured and tied to payment at the contract prices. In public construction works an interim progress payment is usually drawn up once a month. When the work is finished, the final progress payment and the final account file are prepared. These documents are the basis for payment, and if a dispute arises later, they are the first place anyone looks.
We do this work on behalf of contractors and on behalf of contracting authorities or employers, but never for both sides on the same job. On behalf of a contractor, we draw up the measurements, the measurement attachments and the progress payment report. When we work for the authority, we compare the incoming progress payment with the contract, the design and the site measurements. In Kocaeli and the surrounding area, different contract types are used in municipal infrastructure work and in private industrial investments. In the private sector we also prepare the payments between the main contractor and subcontractors in the same order as in public works.
Most problems in progress payments come from the paperwork. A piece of work that was never measured, an attachment missing a signature, a unit-price item that does not match the contract or a new price that was never approved will all turn up at the final account. That is why we keep the measurements, records and approvals from the first progress payment onwards. Getting a missing record completed while the work is still going on is far easier than hunting for it at the final account stage.
Scope of services
Interim progress payments
We document the work done in the period with the quantity schedule, measurement attachments and green book entries, and enter it in the progress payment report.
Calculation by contract type
In a unit-price contract, the measured quantity is the basis. For a turnkey lump-sum contract, we build the calculation on the work program and the work item percentages.
Price adjustment
If the contract provides for it, we calculate the periodic price adjustment with the formula and indices in the applicable principles.
Work increases and new unit prices
We track increases and decreases in the work at every progress payment. For work not in the contract, we prepare the analyses on which the new unit price is set.
Acceptance and final account
Compiling the documents required at provisional and final acceptance, and preparing the final progress payment and the final account file.
Subcontractor payments
Measurement, deduction and payment schedules under the contract between the main contractor and the subcontractor in the private sector.
Applicable legislation
In public works, the order of progress payments, payment, work increases and acceptance are handled under Public Procurement Contracts Law No. 4735 and the General Specification for Construction Works. Price adjustment is calculated under the principles issued on the basis of the additional article of Public Procurement Law No. 4734, and only if the contract provides for it. Before starting the calculation we read the contract and the particular specification, and draw up the progress payment according to their provisions.
In private sector work the public legislation does not apply directly; the contract between the parties sets the order of progress payments. For measurement and documentation we still work the way we are used to in public works. For deductions, advance recovery and security calculations, the provisions of the contract govern.
How we work
Contract review
We look at the contract type, the unit price schedule or work item list, and the price adjustment and payment provisions.
Measurement and attachments
We measure the work on site together with the authority's supervision team. After measuring, we draw up the measurement attachments and the green book entries.
Progress payment report
The quantity schedules, the list of work done, price adjustment and deductions are brought together in the progress payment report.
Checking and reconciliation
We answer the objections and corrections from the other side item by item, and give the reason for each difference in writing.
Final account
When the work is finished, we bring all the interim progress payments, new price records and acceptance documents together in the final account file.
Deliverables
- Interim progress payment report and list of work done
- Quantity schedules, measurement attachments and green book pages
- Price adjustment calculation schedules
- New unit price analyses and draft agreement records
- Work increase and decrease tracking table
- Final progress payment and final account file
- Progress payment review report for the contracting authority or employer
Frequently asked questions
How do progress payments differ between unit-price and lump-sum contracts?
Under a unit-price contract the measured quantity is paid; under a lump-sum contract, the share of work completed. In a unit-price contract the payment is the actual quantity multiplied by the bid unit price. In a turnkey lump-sum contract, payment is made according to the share of the completed work items within the contract price.
What is the green book (yeşil defter)?
It is the book in which site measurements are recorded jointly by the authority's supervision team and the contractor. The quantities in the progress payment rest on these records and the measurement attachments.
What happens if work comes up that is not in the contract?
A new unit price is set. We prepare the analyses and market rate documents; the price is agreed between the authority and the contractor in a signed record and becomes valid once the authority approves it.
Do you provide checking services only on behalf of the contracting authority?
Yes. We compare the progress payment received from the contractor with the contract, the design and the site measurements, and report the findings to the authority. On that job we do not also work for the contractor.
Is a cost estimate file needed for progress payments?
In most cases yes, because the contract quantities and unit prices are the starting point of the progress payment. If there is no such file, we start the work with a quantity take-off and cost estimate.
Request a quote for your project
Write to us with the type of building, its location and the documents you have. We will agree the scope and timeline with you and send a written quote.