1. **State the problem:** Calculate the final payment due at project completion considering retention, liquidated damages (LD) for delay, capped LD, advance recovery, approved claim, all previous payments, and net payable at final certification. 2. **Given data:** - Contract Price (CP) = 2400000 - Advance Payment = 20% of CP = 0.20 \times 2400000 = 480000 - Retention = 5% withheld on each payment - Retention release: 60% at Taking-Over Certificate (TOC), 40% after Defects Liability Period (DLP) - LD for Delay = 12000 per day, capped at 10% of CP = 0.10 \times 2400000 = 240000 - Project Duration = 10 months - 1st interim payment = 35% of CP certified at 6th month - 2nd interim payment = 30% of CP certified at 9th month - Project completes 25 days late, with Extension of Time (EOT) of 5 days - Variation claim = 180000, only 70% approved = 0.70 \times 180000 = 126000 3. **Calculate LD for delay:** - Actual delay = 25 days - 5 days (EOT) = 20 days - LD = 12000 \times 20 = 240000 - Capped LD = 240000 (equal to cap) 4. **Calculate interim payments:** - 1st interim payment = 0.35 \times 2400000 = 840000 - 2nd interim payment = 0.30 \times 2400000 = 720000 5. **Calculate advance recovery:** - Advance payment = 480000 - Recovery rate = 30% from each interim payment - Recovery from 1st interim = 0.30 \times 840000 = 252000 - Recovery from 2nd interim = 0.30 \times 720000 = 216000 - Total advance recovered = 252000 + 216000 = 468000 - Remaining advance = 480000 - 468000 = 12000 6. **Calculate retention withheld:** - Retention on 1st interim = 0.05 \times 840000 = 42000 - Retention on 2nd interim = 0.05 \times 720000 = 36000 - Total retention withheld = 42000 + 36000 = 78000 7. **Calculate retention released at TOC:** - 60% of retention released at TOC = 0.60 \times 78000 = 46800 - Remaining retention after TOC = 78000 - 46800 = 31200 8. **Calculate total payments made before final payment:** - Payments made = Advance payment + 1st interim + 2nd interim - advance recovered - retention released at TOC - Payments made = 480000 + 840000 + 720000 - 468000 - 46800 = 1567200 9. **Calculate final payment due:** - Total contract price including approved claim = 2400000 + 126000 = 2526000 - Deduct capped LD = 2526000 - 240000 = 2286000 - Deduct retention remaining (released after DLP) = 31200 - Deduct payments made = 1567200 - Final payment = 2286000 - 1567200 - 31200 = 686600 10. **Summary:** - Final payment due at completion = $686600