For unfixed materials and goods on site/the works or in transit remains an unresolved issue – particularly where a project is financed by a bank = who generally will not pay for any unfixed materials – Beware: this may result in a disparity between the principal agent‘s Payment Certificate and the bank valuation – must be defined in the tender documents – influences the contractor’s cash flow:

The 2014 JBCC® agreements deal with (non)payment of unfixed materials [CD];

Edition 5.0P-31.6 states ‘shall be included’ subject to 4+1 qualifications … this does not state ‘paid for by the contractor‘. A Guarantee for Advance Payment may be used where goods are stored off site;

The appropriate interpretation of ‘Prompt Payment Legislation’ introduced by the CIDB in 2015 is yet to be clarified (June 2015)