Everyone working on the project uses their usual contractual valuation and approval processes to agree how much work has been completed since the last payment was made, and so how much they should be paid in the next payment. this is documented by a payment certificate, and then an invoice is issued by the supplier ( Payee ) to the customer (Payer ). This all takes place outside of Saible.
Project funders (property developers, lenders, investors, local authorities, Government agencies, etc.) pay the amount agreed in their payment certificates straight into the Saible Bank Account, where it is protected by a legal trust agreement. This trust ensures that the money in the bank account is “ring fenced”- in other words, it can only be used for that specific project.
You are a Payer when you are due to pay somebody else. You are a Payee when you are due to be paid by somebody else. You will often be a Payer and a Payee at the same time (because you have customers and suppliers).
For each Project, and for each payment period, payers and payees must provide a Payment Breakdown. To do this they enter the relevant figures from their payment certificates and invoices into the Saible system to Authorise and Verify payment amounts.
The relevant figures are:
For each Project, during each payment period, once these figures have been entered Saible calculates the payment amount for each payee, and that payment is made.
Here’s a simple example:
A developer is putting in some of their own money into a project, and borrowing the rest from a lender.
The developer engages a main contractor, who in turn brings on a Mechanical and Electrical(M&E) subcontractor.