Skan,

JCT Lump sum (with or without quantities) - the interim accounts are just that, lumps of money agreed to be paid that are part of the overall lump sum price (as may be adjusted for variations etc) and mean very litle. The contractor applies for a payment in accordance with the payment agreed provisions, the Client pays on account what he believes is due in accorence with those same payment provisions. But, it is only an "on account" payment until you get to the final account.

If it is not a remeasurement contract then the only account that is important is the final account. In a remeasurement contract a contractor gets paid for what he has done in interim accounts and this is very different from an "on account" payment in a lump sum contract. Two very important and different concepts.

That said, whatever the contract type, to withhold money on an interim account a valid withholding notice must be given by the EMPLOYER. Not as is often the case, and mistakely so, the QS. HGCR Act says a withholding notice must be given by a party to the contract. The QS only puts together the interim valuation and advises the Client. It is the Clients who is the party to the contract and it is his job to decide to withhold money and issue a notice.

A valid notice must also contain the reasons why money is being withheld. Whilst interim accounts are ongoing there is nothing to stop a Client withholding money on the next interim account if he has not served a valid notice on the last. So if he hasn’t issued a valid notice, you complain and he should pay the full value of that interim account. But it only delays the withholding as on the next account the Client issues a valid notice and withholds the money - perfectly ligitimate as long as the resaon for withholding the money is also.

Agreement and payment of a item in a previous account will be helpful to a contractor if it is not paid in a later account or the final account but it is not conclusive proof that the contractor should be paid it.