Interim Payment Certificate (IPC) Delays: How Contractors Survive in Ghana

The Cash Flow Crisis Behind Delayed Payment Certificates in Ghana

In the Ghanaian construction sector, securing a major infrastructure or commercial building contract is only half the battle. According to industry reports from the Ghana Chamber of Construction Industry (GhCCI), delayed payments against Interim Payment Certificates (IPCs) represent the leading cause of operational paralysis and insolvency among local sub-contractors and engineering suppliers.

A typical contractor in Accra or Kumasi completes GHS 200,000 worth of certified structural or electrical work. While the engineering consultant signs off on the IPC, administrative bureaucracy and treasury processing often delay actual payment disbursement by 60 to 180 days. Meanwhile, heavy machinery rentals, diesel purchases, artisan daily wages, and cement suppliers require continuous cash outlays.

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The Destructive Cascading Effect of IPC Delays

1. Equipment Demobilization: Rental yards repossess backhoes, scaffolding, and concrete mixers if monthly lease fees lapse.
2. Labor Walkouts: Casual site laborers and artisans cannot sustain themselves on promises; site strikes bring construction progress to a complete halt.
3. Supplier Boycotts: Aggregates, steel rod, and cement suppliers halt deliveries, triggering project deadline defaults and liquidated damages.

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Navigating Construction Finance with Built Float

Built Float helps contractors bridge the dangerous window between certificate verification and actual cash disbursement.

Because construction involves unique performance and lien risks, Built Float structures financing carefully:

• Facility Value: Advances on certified billing milestones from GHS 3,000 up to GHS 250,000.
• Collateral Policy: While standard FMCG invoices require no hard physical collateral, construction projects require additional collateral or institutional guarantees to mitigate milestone dispute risks.
• Transparent Cost: Clear rates of 4–5% per 30 days, avoiding compounding bank overdraft interest.

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4 Steps to Protect Your Construction Cash Flow

1. Enforce Milestone Documentation: Ensure site engineers and supervising consultants issue stamped IPCs without procedural defects.
2. Maintain Transparent Subcontractor Terms: Align payment obligations to subcontractors with your client’s verification dates.
3. Bridge the Liquidity Gap: Submit your certified certificate to Built Float to access operational cash for materials and payroll.
4. Protect Your Referral Network: Existing contractors can earn additional commission through the Built Float Referral Program by introducing qualified peer contractors to the platform.