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Interim Payment Agreement
"I need an Interim Payment Agreement for a Hong Kong construction project between ABC Construction Ltd as contractor and XYZ Development as developer, with monthly payments starting March 2025 and 5% retention."
1. Parties: Identifies and defines the paying party and receiving party with their full legal names and addresses
2. Background: Sets out the context of the interim payment arrangement, including reference to the main contract or relationship between the parties
3. Definitions: Defines key terms used throughout the agreement including 'Interim Payment', 'Payment Period', 'Due Date', etc.
4. Payment Terms: Details the agreed interim payment amounts, frequency, and payment schedule
5. Payment Procedures: Specifies the process for submitting payment applications, supporting documents required, and payment certification
6. Payment Conditions: Outlines any conditions that must be met before interim payments are made
7. Default and Remedies: Describes what constitutes default and the consequences of non-payment
8. Set-off Rights: Details any rights to set off amounts against the interim payments
9. Duration: Specifies how long the interim payment arrangement will last
10. Governing Law and Jurisdiction: Confirms Hong Kong law as governing law and specifies jurisdiction for disputes
1. Security: Include when additional security for payments is required, such as parent company guarantees or performance bonds
2. Interest on Late Payment: Include when parties wish to specify interest rates for late payments
3. Dispute Resolution: Include when parties want to specify detailed dispute resolution procedures beyond court jurisdiction
4. Force Majeure: Include when parties want to address payment obligations during unexpected events
5. Early Termination: Include when parties want specific provisions for early termination of the interim payment arrangement
6. Confidentiality: Include when payment details need to be kept confidential
7. Third Party Rights: Include when third parties might have rights under the agreement
1. Schedule 1 - Payment Schedule: Detailed breakdown of payment amounts, dates, and milestones
2. Schedule 2 - Payment Application Form: Template form for submitting interim payment applications
3. Schedule 3 - Supporting Documents: List of required supporting documents for payment applications
4. Schedule 4 - Notice Details: Contact details and addresses for notices related to payments
5. Appendix A - Main Contract Extract: Relevant excerpts from the main contract relating to payments
6. Appendix B - Bank Details: Banking information for making payments
Authors
Construction
Real Estate Development
Engineering
Information Technology
Professional Services
Manufacturing
Infrastructure Development
Project Management
Consulting Services
Building and Renovation
Property Management
Legal
Finance
Commercial
Operations
Project Management
Procurement
Contract Administration
Risk Management
Accounts Payable
Accounts Receivable
Contract Manager
Project Director
Financial Controller
Commercial Director
Quantity Surveyor
Project Manager
Finance Manager
Chief Financial Officer
Construction Manager
Procurement Manager
Legal Counsel
Account Manager
Operations Director
Development Manager
Contract Administrator
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