Construction Contract Disputes in Georgia: Payment and Variations
Construction contract disputes commonly involve proof of completed quantities, authorization of variations and acceptance procedures. We examine why an invoice or interim certificate may not, by itself, settle the parties’ competing claims.
Measure performed works
Compare tender scope, annexed bill of quantities, approved drawings and interim certificates; a payment invoice is not by itself proof of completion.
Use a formal variation trail
Record instruction, scope, price basis, impact on deadline and authorized approval; undocumented oral variations increase dispute risk.
Separate acceptance and defects
Check whether an acceptance act is final or interim, defect lists, correction deadlines, retention and warranty provisions.
Document delay claims
Site handover records, hindrance notices, updated schedules and contemporaneous correspondence help assess responsibility.
Interim certificates versus final acceptance
An interim payment certificate may confirm quantities or a milestone without constituting final acceptance. Read it together with the schedules, bill of quantities, outstanding amounts, retention and defect-remedy rules. If quantities are disputed, reconcile as-built work with signed certificates and drawings before calculating the claim.
Variations and delay evidence
A variation claim should establish who authorized the added work, how its price was agreed and its schedule consequences. Verbal instructions leave room for dispute over whether work was instructed or included in the original scope. Delay analysis depends on site handover records, hindrance notices, critical-path changes and contemporaneous written exchanges.
A payment certificate is evidence, not a substitute for the whole contract
In construction payment disputes, compare actual quantities with drawings, measured works, signed certificates and the approved variation process. Identify who was authorised to instruct extra works and whether price and time consequences were agreed. Distinguish advance recovery, certified amounts, retention for defects and the final account; combining them can produce an inaccurate debt figure. If a contractor claims additional time, link each delay to site access, the critical sequence and written notices rather than a broad assertion that works were difficult. For the employer, retain the same records to separate contractor delay from impediments for which the employer may bear responsibility. Before claiming a penalty or withholding payment, check which obligation was due and whether partial acceptance changed the calculation.
Illustrative scenario: Additional work completed without a clear variation
A contractor performs additional work on an oral instruction and later claims a separate fee. The employer says the work was included in the lump sum. The original bill of quantities, variation procedure, authority of the person giving instructions, correspondence and as-built evidence become crucial. Assess any offsets and programme impacts separately. A newly issued invoice alone does not automatically establish a paid variation.
Common question
Does an interim certificate always mean final acceptance?
No. The contractual role of an interim certificate may differ from final acceptance; payment, defects and retention should be examined separately.
Official sources and legislation
Sources include the Legislative Herald and relevant official administrative guidance. Verify legislation against the current consolidated text.