How contract payments actually flow
On formal building contracts (JBCC and similar), the contractor submits a progress claim for work done; the certifier assesses it and issues a payment certificate; the certified amount becomes due. The certificate is where the value of work executed, materials on site, previous certificates, retention and VAT get reconciled into one defensible number. Small contractors who adopt this workflow on their own projects — even informal ones — get paid faster, because the client sees a professional reconciliation instead of a bare invoice, and disputes reduce to line items rather than the whole amount.
The BuildCape payment certificate template carries the standard structure: gross value of work to date, materials on site, less retention, less previous certificates, plus VAT — with the Interim Valuation, Progress Claim, Retention Ledger and Final Account forms in the library completing the chain from claim to final payment.
Certifying cleanly
- Certify against measurable progress — percentages need a basis (m² tiled, courses laid, milestones reached).
- Track retention deliberately: the Retention Ledger prevents the classic "retention that evaporated" ending.
- Keep certificate numbering sequential and reference the claim it certifies.
- The certified amount plus payment terms creates the due date — late payment then becomes a clear breach, not a vibe.
Fill in the Payment Certificate now — free
Open the BuildCape Forms Library, find "Payment Certificate" and start typing. Works on your phone, on site.
Open the forms library →Common questions
What's the difference between a progress claim and a payment certificate?
The contractor claims (their assessment of work done); the certifier certifies (the assessed amount actually due). On small projects the same person may effectively do both — but keeping the two documents separate preserves the discipline and the paper trail.
What is retention and how much is normal?
Retention is a percentage of each certificate held back as security for defects — commonly 10% reducing to 5% at practical completion, released after the defects liability period. Whatever you agree, write it in the contract and track it in the Retention Ledger.
Is a payment certificate legally binding?
Under standard contracts, a certificate creates an obligation to pay the certified amount by the due date, and non-payment is a breach with defined remedies. Even outside formal contracts, a signed certificate is powerful evidence of acknowledged debt.
Related free forms
Forms in the BuildCape library are professional templates for South African construction businesses. They are not a substitute for legal advice — for high-stakes contracts, have your attorney review the final document. Running a growing team? The BuildCape Platform automates the registers, claims and payroll these forms feed into.