Payment Certification under SCC and CCA

Practice flashcards created to help review the options and procedures for issuing payment certificates under SCC and CCA based on the lecture notes.

What must both parties be in order for architects to issue Buyer Created Tax Invoices?

Both parties must be GST registered.

What are the two options for issuing payment certificates under SCC?

1. Buyer Created (Architect generated) Tax Invoice 2. Contractor Generated Tax Invoice.

What does the Architect do in the Buyer Created Tax Invoice method?

The Architect assesses the claim from the Contractor and issues a Buyer Created Tax Invoice on behalf of the Principal.

What must the Principal pay to the Contractor?

The amount certified by the Architect plus Goods and Services Tax.

Within how many days must the Contractor issue a Tax Invoice to the Principal?

Within twenty-eight days.

What is needed instead of a Payment Schedule if a Contractor's Tax Invoice is simply forwarded to the Principal?

No Payment Schedule is needed in this case.

What clause requires the Architect to ensure the Payment Schedule is in GST Invoice form?

Clause 14.12.2 of SCC.

What should occur if the Architect's valuation differs from the Contractor's Tax Invoice?

The Contractor's Tax Invoice will need to be cancelled and a new one issued.

What should be done to avoid two Tax Invoices being generated for one item?

Discuss and agree procedures with the Principal and the Contractor.

What does the practice note indicate about the information provided?

It is intended as an advisory service only, with no warranty or guarantee of accuracy.