could u pls explain the methods for recovery of the advance payment in construction contracts in examples?
Answer 1. One used method of recovering the advance payment is to start the recovery of the advance payment by retaining a certain percent of each interim payment certificate (IPC), starting with the first IPC issued other than the advance payment certificate, or, in some contracts, starting when the amount paid to the Contractor reaches a certain value or percentage of the accepted contract amount. 2. In other jurisdictions or countries the advance payment is recovered from each IPC, starting with the first IPC issued after the advance payment certificate, and the whole amount of each of the IPCs is retained, up until the whole amount representing the advance payment is recovered. Only after the advance payment is recovered the Contractor will receive his first money after the advance payment. 3. In some countries the law of the country requests that the advance payment is to be paid in more than one installment, actually one advance payment in each of the construction years and each
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