Here’s how the inclusion of IVDs and the surrounding payment mechanism has this effect in practice. It also speeds up the payment process throughout the contractual chain so that all levels of the chain from the main contractor down to subcontractors and sub-sub-contractors are paid within the same 30-day period. Establishing IVDs that operate down the supply chain is intended to reflect the government’s fair payment charter.
JCT 2016 has introduced the concept of a common Interim Valuation Date ( IVD) which is built into all contracts, subcontracts and sub-sub-contracts.
