Source: https://www.quantsurv.com/library/interim-valuations-payment-applications Content format: Markdown version of the public page. Content reviewed: 2026-10-14 # How to prepare an interim valuation An interim valuation assesses work at a point in time. The contract's application and notice procedures determine how that valuation enters the payment process. by [Jack Butler-Kettle]() · About 4 min readShare ## Before you start Have the contract, current measurement, previous application, change register, payment records and relevant material evidence available. An application sets out the amount the applying party seeks. An assessment considers the amount on the applicable basis. Neither should be confused with payment received. Keep the valuation calculation and contractual procedure connected. Accurate measurement alone does not establish that a document meets the contract's notice requirements. ## Step-by-step guide 1. ### 1. Establish the valuation basis Check the contract, valuation date and work included. Gather progress evidence, measurement, instructions and the records supporting eligible materials. The treatment of materials, retention and adjustments depends on the agreement. Do not copy another project's percentages or conditions without checking them. [Subcontract payment assessments]() can support either preparation or assessment, with the role agreed in advance. If you are paying a builder, check the request against the agreed milestone or valuation basis. Do not substitute the lender’s drawdown stage for the contract. Establish completed work, approved changes, eligible materials and previous assessments. Ask who inspected progress and what the assessment excludes. 2. ### 2. Reconcile the cumulative account Show the cumulative value and applicable adjustments. Deduct the appropriate previous amount on the agreed basis to explain the current period figure. Distinguish previous applications, assessments and actual payments. They may differ, and using the wrong figure can hide an unpaid balance or double count work. Keep a separate payment history where needed. 3. ### 3. Support material items Link variations to instructions and price build-ups. Show the status of agreed and outstanding items separately. Explain any difference from the previous valuation. A [payment application check]() can test one defined period for reconciliation errors and missing support. 4. ### 4. Check and follow the submission procedure Check the required document, recipient, method and dates against the contract and applicable law. A valuation recommendation does not itself confer authority to certify. Use the existing [payment and notices guide]() for the distinction between the valuation and procedural position. Where an amount is disputed or remains unpaid, [claims support]() assesses the contested position and appropriate next steps. For a contractor applying for payment, check the sum, basis, recipient, service method and deadline against the actual agreement. Keep submission evidence. A correct valuation and a procedurally valid application are separate checks. Use [Subcontract payment application preparation]() where preparation or checking is needed. **Before you finish:** Check the sum, basis, recipient, deadline, approval and service evidence. Keep the application and subsequent assessment separately. ## Worked example ### The facts For illustration, a contract applies 5% retention to the stated £100,000 cumulative valuation. Previous assessments total £70,000. ### What happens 1. The illustrative retention deduction is £5,000, leaving £95,000 cumulative net value. 2. Deducting £70,000 of previous assessments gives £25,000 for this period, before tax and any other applicable adjustments. 3. The payment ledger separately shows only £65,000 received against the previous £70,000. The £5,000 difference is recorded separately. ### What this shows The current valuation is £25,000 on these assumptions. The separate £5,000 payment difference remains visible without being silently folded into the current valuation. ### Payment application template Measure at the agreed valuation date. Use the contract valuation and retention rules, then reconcile the current application to earlier assessments. [Download blank Excel workbook]() Free blank template for your own project. The completed example is shown below. No email address required. View the completed example Completed fictional example Westhaven refurbishment · 14 October 2026 · Version 1.0 #### Valuation detail Scroll across if needed to read the whole record. A dash means no value has been entered. Valuation detail: completed fictional example | Item | Description | Cumulative value (£) | Supporting record | | --- | --- | --- | --- | | MW-01 | Measured original work | £110,000.00 | Measure MW-10; drawing P-104 C | | CH-08 | Agreed additional work | £10,000.00 | Change agreement A-08 | #### Application summary Scroll across if needed to read the whole record. A dash means no value has been entered. Application summary: completed fictional example | Cycle / valuation date | Gross cumulative (£) | Retention (£) | Previous assessed (£) | Current application (£) | VAT / payment basis | | --- | --- | --- | --- | --- | --- | | October / 20 Oct 2026 | £120,000.00 | £6,000.00 | £90,000.00 | £24,000.00 | Excluding VAT; check invoice and tax treatment separately | Example retention is £6,000 on £120,000. Previous assessed payments of £90,000 are not the same as cash received. Review the separate cash reconciliation before chasing payment. [Browse the Library]()