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Interim Payment Agreement Template for Hong Kong

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Key Requirements PROMPT example:

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."

Document background
The Interim Payment Agreement is essential for business relationships requiring regular periodic payments before project completion or during ongoing service provision. This document, governed by Hong Kong law, is commonly used in construction, development, and service industries where work progresses in stages. It establishes clear payment procedures, timelines, and obligations for all parties involved, while incorporating relevant Hong Kong statutory requirements and commercial practices. The agreement typically includes details about payment applications, certification processes, payment schedules, and mechanisms for resolving payment-related disputes. It serves as a crucial tool for managing cash flow and reducing payment-related risks in long-term commercial relationships.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions































Clauses

























Relevant Industries

Construction

Real Estate Development

Engineering

Information Technology

Professional Services

Manufacturing

Infrastructure Development

Project Management

Consulting Services

Building and Renovation

Property Management

Relevant Teams

Legal

Finance

Commercial

Operations

Project Management

Procurement

Contract Administration

Risk Management

Accounts Payable

Accounts Receivable

Relevant Roles

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

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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