Interim payment: definition and example
A payment on account during the job, usually monthly, for the work done so far.
By Jack Butler-Kettle · Updated
Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.
What it means in practice
Read this alongside section 109 of the Housing Grants, Construction and Regeneration Act 1996 and JCT Explains…Interim Payments.
Interim payments provide payment on account during the work. A cumulative application normally considers the value to date and previous amounts, rather than claiming the entire cumulative value again. An interim assessment does not necessarily determine the final valuation of the package.
Reconcile measured work, deductions and previous payments at each cycle. Underpayment prevention helps keep that supporting record consistent.
Worked example
The facts
A subcontractor values work to date at £30,000 after receiving £22,000 in earlier payments.
What happens
It checks the agreed treatment of retention and any other adjustments.
Before those adjustments, it identifies an £8,000 difference rather than requesting another £30,000.
What this shows
A clear cumulative reconciliation explains what is newly claimed and avoids confusing total value with the current balance.
Sources
- Housing Grants, Construction and Regeneration Act 1996, s 109 (Entitlement to stage payments). legislation.gov.uk.
- JCT Explains…Interim Payments (16 October 2023). The Joint Contracts Tribunal.