8 ct8 art qap pfa payment process and final account

PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 PROJECT MANA GEMENT QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT ARTELIA VIETNAM Fl.11, HQ Building 193 C3 Bà Triệu Ha Noi Tel.: +84 (04) 3734 7260 DATE: NOV 2017 REF: CT8.ART.QAP.PFA - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT REVISION COMMENTS DATE 00 DRAFT for comment 01/11/2017 st submission 01 02 03 LƯU CHUYỂN TỚI Client – MY DINH REAL ESTATE INVESTMENT JOINT STOCK COMPANY PM - ARTELIA  Consultants/ Contractors  / CT8.ART.QAP.PFA / NOV 2017  A - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT CONTENTS PAYMENT PROCESS OF CONSULTANTS CONTRACTOR’S PAYMENT PROCESS: GENERAL PROCEDURE 2.1 DIFFERENT TYPES OF INVOICES 2.2 ASSESSING ACTUAL WORK PROGRESS _ 2.3 ESTABLISHING A VALUATION CERTIFICATE 3 PROCESSING AND APPROVAL OF VALUATION CERTIFICATE _ FINAL ACCOUNT _ 4.1 INTRODUCTION _ 4.2 PROCESS OF FINAL ACCOUNT STATEMENT _ 4.3 FINAL ACCOUNT STATEMENT _ 4.4 VALUATION CERTIFICATION FOR FINAL ACCOUNT _ / CT8.ART.QAP.PFA / NOV 2017 B - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT PAYMENT PROCESS OF CONSULTANTS The consultants covered by this procedure are:  Designers (including Architect)  Quality Control (as per Circular 11 requirements)  Provides for facility training of all users prior to handover  Any other consultants that are required for the project, appointed by the Owner (e.g independent surveyor, design review etc…) These consultants have a direct contract with the Owner and their invoice shall be addressed to him Invoices shall indicate as a minimum:  Total contractual amount  Amount of agreed variations (if any)  Cumulative amount invoiced corresponding to services performed so far  Amount already paid  Invoiced amount (instalment)  VAT  Invoiced amount with VAT If the Project Manager (ARTELIA) considers that the amount invoiced does not correspond to services actually performed, he may:  Or request an amended invoice from the Consultant corresponding to services he evaluates as actually performed In both cases, he informs the Owner about his decision within days following receipt of the invoice The Owner shall revert to the Consultant informing him about the situation The following chart summarizes the approval process workflow with the expected dates, starting from D-day of receipt of the invoice A copy of approved invoice is kept in the site office file together with any correspondence related with the approval process (if any) / CT8.ART.QAP.PFA / NOV 2017 - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT On behalf of Client , Artelia receive invoice from consultants, contractor Consultant or Contractor prepares and submits a revised invoice Register invoice and forward it to PM (ARTELIA)/ PM (ARTELIA) request consultant or Contractor to amend invoice accordingly PM (ARTELIA) checks if works have been performed according to invoice Amount invoiced conform to work performed and according to contract agreement Yes PM (ARTELIA) signs payment request and transmit it to Consultant or Contractor Project Director for signature Not accepted but can be amended Not accepted/ Not accepted KhôNong chấp thuận Invoice refused Contractor and consultant notified by PM or PA Approved invoice transmitted to Contractor, Consultant’a financial department for payment process Contractor, Consultant receive payment / CT8.ART.QAP.PFA / NOV 2017 - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT CONTRACTOR’S PAYMENT PROCESS: GENERAL PROCEDURE 2.1 DIFFERENT TYPES OF INVOICES Depending on the country and the contract, the contractor may be paid on the basis of the following documents:  Contractor’s invoice (for spot orders)  Instalments (for contracts lasting more than one month) submitted by the contractor  Payment proposal or Valuation Certificate prepared by the Project Management and agreed with the Contractor As a general rule, all invoicing documents shall be calculated with cumulative amounts 2.2 ASSESSING ACTUAL WORK PROGRESS For instalment or valuation certificates, the amount to pay is fixed either according to a payment schedule or according to the progress of the works actually performed In the latter case, the task breakdown described in the contractual documents is not always adapted to assess the actual progress value; it is then necessary to prepare another breakdown, split by trade, task and location taking into account:  The scope of works (to get the comprehensive list of tasks)  The detailed contractor’s time schedule (to get the sequence of the tasks)  The schedule of rates (to get the value of each task) A task is a building element (or part of it) that has be completed and shall include the design studies, site preparation (equipment, supplies, manufacturing), the carrying out of the work with its quality control, cleaning and commissioning (for technical trades) To make sure not to “overpay” a contractor, it is advised to foresee a significant percentage of the contract amount to make sure that all works will be carried out properly and that all as-built documents are delivered 2.3 ESTABLISHING A VALUATION CERTIFICATE  ARTELIA has developed a model of valuation certificate, called “payment proposal” taking into account two categories of information:  Information regarding the progress of the works (based on the contract or on the variation orders), as well as specific supplies or manufacturing if the case occurs  Information regarding complement or deduction as per contractual agreement between the Client and the contractor such as: o Advance payment (for manufacturing, supply…) / CT8.ART.QAP.PFA / NOV 2017 - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT o Price revision/ Price revision o Retention money (warranty) o Possible penalties or liquidated damages o Common expenses Any advance payment shall be subject to the delivery by the contractor of the two following documents:  A bank guarantee equal to the amount of the advance  An invoice prepared either by the contractor or by ARTELIA (Valuation certificate) This advance payment is paid back every month either as a fixed amount or as a percentage of the amount invoiced The valuation certificate form is shown in Appendix1 It shall show the cumulative amount, the amount already paid (until previous month) and the amount to pay this month (by subtracting the first column from the second one) The form is to be adapted in function of the project’s needs and the country’s legal requirements Prepared by the Project Management, it shall be endorsed by the Contractor (identified at the top of the form) and signed by the Client (or his representative) / CT8.ART.QAP.PFA / NOV 2017 - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT PROCESSING AND APPROVAL OF VALUATION CERTIFICATE Valuation of tasks to prepare from BOQ Pre-check of contractor’s statement by ARTELIA (according to expected progress at month end) Contractor submit statement (6 copies) to ARTELIA Checking of statement by ARTELIA according to work progress and valuation of tasks – Review of variations No Checking by Client’s QS OK? Yes ARTELIA issue the interim payment certificate with Contractor Project Director’s endorsement and submit it for payment to Contractor Handling of proposal for payment by Contractor’s financial department Payment to contractor / CT8.ART.QAP.PFA / NOV 2017 - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT FINAL ACCOUNT 4.1 INTRODUCTION The payment of final account corresponds to the common agreement between the parties (the Owner and the contractor) on all services and works actually performed by the Contractor and their remuneration as per contract This payment is distinct from the acceptance of the Works: the Owner cannot refuse to accept the Works for the only reason there is no agreement on their account 4.2 PROCESS OF FINAL ACCOUNT STATEMENT The contractor shall prepare its bill for final account within the timeframe indicated in its contract (in principle 60 days after the preliminary acceptance) with the following breakdown:  Contractual lump sum  Scope modifications (add or omit) that have been ordered by the Owner (change or variation orders)  Price revision (of lump sum and scope modification) – if the case applies This bill is submitted to the Project Management for review 4.3 FINAL ACCOUNT STATEMENT The Project Management checks the bills received for final account as they come, and checks in particular that:  The lump sum corresponds to the agreed contract amount  The scope modifications are all justified by the issuance of a notice to proceed or a variation order signed by the Client  The calculation of the price revision (if any) is correct Following this verification, the Project Management prepares a final account statement by considering the three positions mentioned above and possibly adding bonuses or omitting penalties The final account statement together with the bill issued by the contractor is forwarded to the Client (in principle not later than 45 days after receipt of final account bill) The Client notifies the Contractor of receipt This notification is either sent by registered mail or preferably discussed directly with the contractor before signing it off The contractual document between the Client and the contractor shall foresee:  The case if the contractor does not submit on time its final account bill (in this case, it should be prepared by the Project Management at its expenses)  The timeframe for the contractor to accept or deny the final account statement notified by the Client / CT8.ART.QAP.PFA / NOV 2017 - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT 4.4 VALUATION CERTIFICATION FOR FINAL ACCOUNT Usually, the agreement on the final account statement does not allow calculating completely the related valuation certificate The three following items should also be taken into consideration  Retention for warranty: if the contractor has provided a performance bond, and that the amount of that bond does not cover the retention amount, it is advised to request the contractor a complementary bond  Common expenses chargeable to the contractor  Other possible deductions oOo / CT8.ART.QAP.PFA / NOV 2017 - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT ANNEX INTERIM PAYMENT CHART & CERTIFICATE / CT8.ART.QAP.PFA / NOV 2017 - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT FLOW CHART - INTERIM PAYMENT CLAIM/ CERTIFICATE Steps Actions / tasks Action By Timeline Contractor end of each month 25th Check Interim Payment submitted by Contractors including Inspection documents,Test Plans (ITPs), site delivery dockets, signed VO's, QA/ QC docs… Artelia day (s) Site Valuation/ Agreement ; defects, NCRs … ? Contractor/ Artelia day (s) Artelia Base on Contract Artelia/ Employer day (s) Artelia day (s) Receive application for interim payment from Contractor Prepare payment certificate Send draft IPC to Employer for review/ approve Issue Interim Payment Certificate Contractor agreement/ sign Contractor day (s) Employer agreement/ sign Employer day (s) Prepare and submit Invoice to Employer Accountant Contractor 10 Payment Employer / CT8.ART.QAP.PFA / NOV 2017 day (s) Base on Contract - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT FLOW CHART - VARIATION Steps Actions / tasks Artelia issues SI to contractor and Artelia Artelia Contractor to check SI If no cost implication, contractor to proceed with work immediately Action by Approx Times depending on VO amount $ scale Artelia Contractor If Contractor believes SI does have cost implication Contractor shall submit notification of VO within days including estimated cost to be followed up by the full VO submission including the following asap: - SI - Shop drawing approved ( if need)/ on contractor allow (old versus new) - Schedule of VO ( if need) - Related document - Value of VO Artelia check and confirm if VO is valid in accordance contract Contractor Artelia / Contractor days Artelia check/assess VO - Check quantity with contractor - Check rate with contractor Artelia 11 days Artelia issues the VO assessment to Client/ contractor Artelia day Contractor Client/ contractor/Artelia day Contractor day if not, answer to Contractor and Client / Artelia if yes, VO is valid Client/ Contractor check and agree If not, arrange meeting to finalize VO yes, agreed by all Contractor sign sets VO approved Artelia sign for Certification Artelia day 10 Certified by Client Client days 11 Inclusion in next IPC - then payment / CT8.ART.QAP.PFA / NOV 2017 Contractor 10 - PROJECT OF HIGHRISE BUILDING – SERVICES IN LANDZONE CT8 project management QUALITY ASSURANCE PLAN - PAYMENT PROCESS AND FINAL ACCOUNT DỰ ÁN KHU NHÀ Ở CAO TẦNG – DỊCH VỤ Ô ĐẤT CT8 My Dinh, Hanoi, Vietnam PACKAGE NAME TÊN GÓI THẦU: … INTERIM PAYMENT CERTIFICATE No CHỨNG CHỈ THANH TOÁN TẠM SỐ … EMPLOYER/CHỦ ĐẦU TƯ CƠNG TY CP ĐT BẤT ĐỘNG SẢN MỸ ĐÌNH Date: 10-Sep-17 PROJECT MANAGER/ BAN QLDAARTELIA VIETNAM CONTRACTOR/NHÀ THẦU …… Contract No./ Hợp đồng số: … Ref/Số tham chiếu: CT8.ART…… IPC No… A CONTRACT PRICE (VAT Included) GIÁ TRỊ HỢP ĐỒNG (Bao gồm thuế) B VARIATIONS (CONTRACT ADDENDUM) / PHÁT SINH (PHỤ LỤC HĐ) C ANTICIPATED CONTRACT SUM (A+B) TỔNG GIÁ TRỊ HỢP ĐỒNG (A+B) D ADVANCE PAYMENT TẠM ỨNG E ESTIMATED VALUE OF SERVICES EXECUTED TO DATE (Cumulative) CÔNG VIỆC, DỊCH VỤ ĐÃ HOÀN THÀNH TỚI NAY (Lũy kế) - F VARIATION ORDERS GIÁ TRỊ PHÁT SINH - G MATERIAL ONSITE TẠM ỨNG VẬT TƯ TRÊN CÔNG TRƯỜNG - H TOTAL VALUE OF WORKS (E+F+G) TỔNG GIÁ TRỊ THỰC HIỆN (E+F+G) - I VAT 10% (H*10%) THUẾ GIÁ TRỊ GIA TĂNG 10% (H*10%) - 42,236,700,000 42,236,700,000 30% 12,671,010,000 J TOTAL VALUE OF WORKS AFTER TAX (H+I) TỔNG GIÁ TRỊ THỰC HIỆN SAU THUẾ (H+I) K TOTAL AMOUNT INCLUDING ADVANCE PAYMENT TO DATE (D+J) VAT Included TỔNG GIÁ TRỊ BAO GỒM TIỀN TẠM ỨNG SAU THUẾ (D+J) Bao gồm thuế L LESS RETENTION TIỀN GIỮ LẠI % % - M LESS ADVANCE PAYMENT (J*%) KHẤU TRỪ TIỀN TẠM ỨNG(J*%) % - N THE CONTRACTOR'S DEDUCTIBLE VAT INCLUDED (ELECTRICITY, WATER, SANITATION ) CÁC KHOẢN KHẤU TRỪ CỦA NHÀ THẦU BAO GỒM THUẾ GIÁ TRỊ GIA TĂNG (TIỀN ĐIỆN, NƯỚC, VỆ SINH ) 12,671,010,000 - WITHHELD AMOUNT FOR QUALITY PROOF IF ANY GIÁ TRỊ TẠM GIỮ CHỜ CHỨNG MINH CHẤT LƯỢNG NẾU CÓ FINES (INCLUDING VAT) CÁC KHOẢN PHẠT HỢP ĐỒNG SAU THUẾ O P - TOTAL AMOUNT DUE TO DATE AFTER DEDUCTIONS (K+L+M+N+O+P) VAT Included TỔNG GIÁ TRỊ ĐẾN NGÀY SAU KHI ĐÃ GIẢM TRỪ CÁC KHOẢN SAU THUẾ (K+L+M+N+O+P) Q R LESS AMOUNT CERTIFIED PREVIOUSLY KHẤU TRỪ GIÁ TRỊ SAU THUẾ ĐÃ XÁC NHẬN LẦN TRƯỚC S TOTAL AMOUNT FOR THIS PAYMENT (Q+R) VAT Included TỔNG GIÁ TRỊ CĐT PHẢI THANH TOÁN CHO NHÀ THẦU KỲ NÀY (Q+R) 12,671,010,000 12,671,010,000 In words: … Reference: Tham chiếu Attachment Đính kèm Approved by owner Agreed by contractor Chấp thuận chủ đầu tư Chấp thuận nhà thầu Hà Nội, ngày tháng năm 201x Hà Nội, ngày … Chức vụ… tháng năm 201x Validated by Artelia Prepared by Artelia Xác nhận tính hợp lệ Artelia Chuẩn bị Artelia Hamon Tanguy Project Manager / Giám đốc dự án Hà Nội, ngày tháng năm 201x Contract Manager / Quản lý hợp đồng Hà Nội, ngày tháng năm 201x / CT8.ART.QAP.PFA / NOV 2017 11