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Payments provisions in CPWD CONTRACT
The document outlines policies for payments to contractors, including: 1) Contractors must submit bills that are then checked by engineers before payment. Final bills are based on tender value and interest is owed for delayed payments. 2) Contractors must notify completion within 10 days and receive completion certificates within 30 days. Final bills must be submitted within 1 month of completion. 3) Payments can be made directly to banks if requested. Deductions will be made for taxes, VAT, and cess. Advance payments require security and permits while mobilization advances over 2 crores require bank guarantees.
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Payments provisions in CPWD CONTRACT
- 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 Advancepayment – 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.
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