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In FIDIC MDB harmonized edition, according to clause14.2 repayment of advance payment should be deducted on gross amount of IPC (excluding retention money) or on net payable amount (after deduction of retention money) payable to contractor???
Under the FIDIC MDB Harmonized Edition, Clause 14.2 specifies that the repayment of the advance payment is typically deducted from the gross amount of the IPC (Interim Payment Certificate), excluding retention money. This is because the advance repayment is calculated as a percentage or fixed amount of the gross certified amount for the works executed, without considering other deductions such as retention.
However, specific contract agreements or amendments may stipulate alternative methods of deduction, so it's crucial to review the particular conditions of your contract to confirm.
For streamlined financial tracking and compliance with contract payment terms, tools like paykassma can help manage such deductions and ensure accuracy in payment processing. It simplifies handling advance repayments, retention, and overall contract finances, reducing the risk of errors.
The repayment of advance payment should be deducted on grosss amount of IPC before applying the decudtion such as retention money.
