Payment provisions in CPWD Contract AVINASH KUMAR GUPTA CCW AIR NEW DELHI

2. PAYMENT TO CONTRACTORS
 Clause-7, Contractor to submit Bill
 Test check by AE/EE
 Bill Register to watch timely payment
 Interest for delayed payment 7.5%
 Final Bill-
 Tendered value
- Rs. 45 lacs – 2 months
- 2.5 crores > x > 45 lacs – 3 months
- 2.5 crores – 6 months
 Interest payable.
 Running bills within 6 days

3. PAYMENT TO CONTRACTORS
 Contractor’s notice to complete work – 10 days
 Issue of completion certificate – 30 days
 Submission of final bill – one month
 Payment to Bank directly if so requested
 Deduction of IT (TDS)
 Deduction of VAT and Cess (Building and other
workers CessAct, 1996)
 perishable terms

4. Advance Payment
 Advance payment – MB done but payment pending
 on Hand Receipt – CPWA- 28
 Advance payment – no MB done- CPWA-26
 Secured advance – 90% for non perishable terms
 Indemnification Bond/insurance required for
perishable items

5. MOBILISATION ADVANCE
 > 2.00 crores. Capital intensive works
 10 % of tendered value, 10% simple interest
 Against bank guarantee
 Recovery starts when 10% work in completed
 Entire recovery + interest – 80 % work completed

6. ADVANCE ON T&P
 Advance on T&P
- New T&P – 5% of tendered value
or 90% of cost whichever is less
- Second Hand – 5% of tendered value
or 50% of depreciated value
whichever is less
- 75% on brought to site
25% on commissioning
- Recovery period from 10% to 80% of work
accomplishment
- T&P to be hypothecated to Govt.
- T&P to be insured.

7. END
THANKS