Necessity of Interim Payment

i. In case of large project, the contractor has to invest the large amount for a longer duration and this is not suitable or possible to the contractor. Progress of project work may affect due to lack of funds with the contractor. In such case, the interim payment is made to the contractor so as to continue the progress of project without any break.
ii. Amount of money is required by contractor against the material purchased by him.
iii. The interim payments also indicate the approximate value of work done by contractor.
iv. The engineer in charge measured all the work done by him and payment is made after the necessary deductions like recovery of dues, security deposits and advance if any.