Category: Quantities & pricing
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
Materials on site are approved materials delivered and properly stored but not yet installed. Some contracts allow a percentage of their value in the interim valuation under conditions such as approval, proof of ownership and secure storage, deducted again when installed.
Why it matters on a project
It eases the contractor's financing on large materials such as steel and aluminium, but needs tracking so materials are not paid twice.
Common mistake
Claiming materials in a valuation before their samples are approved, so the consultant rejects them and payment is delayed.
Frequently asked questions
What share of material value is paid?
The contract sets the percentage and conditions; some contracts do not allow it at all.
What is needed to claim them?
Approved sample, purchase invoice and secure storage that can be inspected.
Related terms
- Payment application (IPC)A periodic payment request based on approved progress and executed quantities.
- Material submittalA request to approve a material or product with manufacturer data and samples before supply.
- Cash flowThe timing of money coming in and going out over the project.
- Measurement sheetA sheet recording the dimensions and calculation behind each quantity.
Read next
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