An MC (Monthly Certificate) records the value of work completed to the end of the month, based on a joint measurement by the contractor and the supervisor. The MC is the basis of the progress certificate, and the progress certificate is the basis of the progress bill. Without a tidy MC, bills get rejected or paid late.
Kinds of MC
| MC | When | Contents |
|---|---|---|
| MC-0 | At the start, after a joint site measurement | Contract quantities adjusted to real conditions; can lead to an addendum |
| Monthly MC (MC-1, MC-2, ...) | At the end of every month | Quantity installed per item to date, to last month, and this month alone |
| MC-100 | When the work is complete | Final quantities of all work; basis for handover and the last bill |
What a monthly MC contains
| Column | Example for item II.2 Stone foundation |
|---|---|
| Code and description | II.2 Stone foundation |
| Contract quantity and unit price | 10.71 m3 × Rp1,120,000 |
| Quantity to last month | 6.00 m3 |
| Quantity this month | 3.50 m3 |
| Quantity to date | 9.50 m3 (88.7%) |
| Value to date | 9.50 × Rp1,120,000 = Rp10,640,000 |
| Contribution to project progress | Item weight × percent complete |
Working out this month’s bill
An example: a Rp1 billion contract (before VAT) with a 20% down payment and 5% retention. Progress was 35% to last month and is 45% to this month.
| Item | Amount |
|---|---|
| Value of work to date (45%) | Rp450,000,000 |
| Minus value to last month (35%) | minus Rp350,000,000 |
| Value of work this month | Rp100,000,000 |
| Down payment repayment (20%) | minus Rp20,000,000 |
| Retention 5% | minus Rp5,000,000 |
| This month’s bill (before VAT and income tax) | Rp75,000,000 |
VAT is billed separately, and the client withholds final income tax when paying. Work out the cash actually received with the progress payment calculator.
Steps every month
- Agree the monthly cut-off date with the supervisor.
- Measure jointly: the quantity installed for every item worked on this month, counting only work that passes inspection.
- Fill the MC: quantities to last month, this month and to date, with take-off sheets and photos.
- Sign the inspection and progress certificates with the supervisor and the client.
- Prepare the progress bill with the MC and certificates attached, and record it as a receivable.
- Update the actual S-curve and the WIP report from the same MC.
Common mistakes
- MC quantities estimated instead of measured jointly, so they get cut at checking.
- Material delivered but not installed counted as progress.
- Variations without an addendum included in the MC.
- The MC and the S-curve using different progress figures.
The full guide is in How to create a construction finance report in Google Sheets. It has a free template (Excel or Google Sheets) and a checker that reads your own workbook.
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Common questions
What is an MC in construction?
A Monthly Certificate: the monthly value of work completed, from a joint measurement, used as the basis of the progress bill.
What is MC-0?
A joint measurement at the start of the project to adjust contract quantities to site conditions; the result can lead to an addendum.
How is this month’s bill worked out?
Value of work to date minus value to last month, then minus the down payment instalment and retention.
Who signs the MC?
The contractor and the supervisor who measured together, then the client approves it.
References
- PU Kutai Barat: Module 04 on completing construction contracts (Indonesian): MC-0, MC-100 and contract changes