Progress payment

A progress payment, called hakediş in Turkish construction, is the basis for interim and final payments to a contractor. At set intervals, the work done to date is measured and multiplied by the contract prices; previous payments and deductions are subtracted to arrive at the amount due. The system is widely used on both public and private projects.

How it is prepared

Work completed on site is measured item by item, and the measurements are recorded in supporting sheets known in Turkish as ataşman. Quantities are drawn from these sheets and priced. The resulting claim is reviewed by the client’s supervising engineer or technical team and approved if it is in order. Depending on the contract, items such as retentions, taxes, advance repayments and price adjustments are added or deducted. The types and rates of deductions are set by the contract and the relevant legislation.

Unit price and lump sum

Under unit price contracts, progress payments are based on the quantities actually built. Under lump sum contracts, payments follow the completion of the work packages defined in the contract. Either way, a current and consistent set of drawings prevents disputes. Recording site changes promptly and in writing goes a long way towards avoiding arguments when the payment is being agreed.