1. Payment of the contractor: the cumulative value of work done
Contract value
100% completed (everything in the project has been completed)
S-curve: the project gains more value with time
Cumulative value of project in ¥
50% completed (foundations + conc. elements + masonry)
25% completed (foundations + concrete elements)
Handover date
Project duration (time)
10% completed (foundations)

2. 2. Client´s architects scrutinize what has been done on site
If value of work done is NOT as requested in interim certificate, the architect will ask the contractor to revise his request to match what has been done on site!!
Client´s architects
2. Client´s architects scrutinize what has been done on site
1. At the end of each month, the contractor sends an interim payment request to the Client´s architects
Contractor
Client´s bank
4. Client´s bank pays the contractor
3. If value of work done is as is requested in interim certificate, the architect will ask the Client's bank to pay the contractor

3. Final payment 15 days after handover
Payments:
1st: 200,000
2nd: 200,000
3rd: 300,000
4th. :150,000
5th.: 100,000
Final: 50,000
1,000,000 ¥
Final: Work done:1,000,000 ¥,
payment = 1,000, ,000= 50,000 ¥
Contract sum:
1,000,000 RMB
5. Work done:950,000 ¥,
payment = 950, ,000= 100,000 ¥
4. Work done:850,000 ¥,
payment = 850, ,000= 150,000 ¥
3. Work done:700,000 ¥,
payment = 700, ,000= 300,000 ¥
Final payment 15 days after handover
2. Work done:400,000 ¥,
payment = 400, ,000= 200,000 ¥
Project hand over
1. Work done:200,000 ¥, payment = 200,000 ¥
Time
1st Month
3rd Month
5th Month
2nd Month
4th Month
PAYMENT OF THE CONTRACTOR
( Cumulative value of work done – cum. payments = payment for period)