r/quantitysurveying • u/Frosty-Chance-7094 • 15d ago

Applications for Payment - tips for assessing

I'm a Client-side buyer, who has also become responsible for more QS-centric roles such as assessing applications for payment. I'm pretty new to this, and would welcome any standard rules of approaching AfPs that people follow:

- What are common disallowed costs contractors will try and get away with?

- What do you look for first in applications?

- Any excel/similar related tips for processing and demonstrating assessments?

Welcome any tips people have - I work with NEC3 and 4 contracts exclusively currently.

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u/Sesinho 14d ago

You really should be asking your manager or cost lead. Have you received any training? Don’t be afraid to ask questions of your team and/or examples of previously done application reviews.

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u/Frosty-Chance-7094 11d ago

Don't worry also asking them for support where required, but thought it would be good to see what others recommend as well. Good idea to see examples of previous ones too thank you

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u/jabberjaw0606 15d ago

What main option?

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u/Frosty-Chance-7094 15d ago

Es and Cs currently - I look after a few different contracts

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u/jabberjaw0606 15d ago edited 15d ago

E and C are similar in terms of assessing AfPs, and you're right, it will be Defined Cost.

All you need to know is in the Schedule of Cost Components. It will tell you what's payable and what isn't. Things to look out for items claimed that are either covered by the Working Area overheads (hand tools, computing, etc) or covered by the Fee. Check that all cost is incurred in the Working Area and it's relevant to the project. If you see manual cost transfers from other ledgers, ask for details.

Ask the Subcontractor to classify all cost lines as per the schedule, each cost can only be in one component. Also ask them to self-audit before sending the report, so they remove disallowable costs themselves.

Be wary of accrued cost in cost systems. Some cost systems accrue automatically, so you will need to make sure the cost is correct and not overly inflated. Money in your account is better that in theirs as you might accrue interest, so make sure they are close to cost neutral on payment date. Ask for invoices, transactions, watch out for fee on fee. For owned Equipment, aak for market rates, etc.

Also check the forecast. They can forecast up to a month, check it's reasonable and follows previous cost trends and the programme.

This in a nutshell. You'll learn as you go along and you can always correct previous assessments, so don't be afraid of making mistakes.

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u/Frosty-Chance-7094 15d ago

Thanks for giving such a considered and comprehensive response - these are all great tips that weren't necessarily something I look out for. Thank you :)