Contract Payments 22

CONTRACT PAYMENTS

Types of Payment
• Advance Payment
• IPC (monthly)
• On Account Payments

• Final Accounts

Advance Payment means
• Interest-free loan for mobilization, when the
contractor submits a guarantee in a form by a
Bank or a Company acceptable to the
Employer.

Advance payment(clause
•51)
The Employer shall make advance payment

to the
contractor in an amount to 20% of the Initial Contract
Price excluding provisional sums and contingencies,
within 14 Days after furnishing of an unconditional
guarantee in a form and by a bank or company
acceptable to the Employer. The guarantee shall remain
effective until the advance payment has been
repaid(clause 51.1, ICTAD/SBD/01).
• The Contractor is used the advance payment only to pay
for Equipment, Plant, Materials and Mobilization expenses
required specially for execution of Contract(Clause51.2
ICTAD/SBD/01).
• The advance payment shall be repaid by deducting
proportions and repaid in full when total certified value
of work reaches 90% of the Initial Contract Price(clause
51.3, ICTAD/SBD/01).

Interim Payment Certificate(IPC)clause 42
- Reasonable Valuation

-The Contractor shall submit to the
Engineer monthly
statements of the
estimated value of the work
executed.
- The Engineer shall check and certify
monthly
statement within 21 days of the
receipt of the
contractor’s
statement
The Employer shall pay the amount certified
within 14 Days

Final Certificate(clause 55)
• Upon completion of the Defects Liability Period
the Contractor shall request the Engineer to
issue a “ Final Certificate” and the Engineer
shall issue the “Final Certificate” upon being
satisfied that the Contractor has rectified the
Defects(clause 55.1, ICTAD/SBD/01).