Sunday, December 4, 2016

Advance Payment-Final Account

Advance Payment (අත්තිකාරම් මුදල) ~ Final Account

The employer shall make advance payment to the contractor in an amount equialent to 20% of the inicial contract price excluding provisianal sum & contiengencies within, 14 days after turnishing of an unconditional guarantee in a form & by a bank or a company acceptable to the employer. The guarantee shall remain effective until the advance payment has been repaid, but the amount of the guarantee shall be progressively reduced by the amount will not be charged on the advance payment.

The contractor is to use the advance payment only to pay for equipment, plant, materials & mobilization expense required specifically for execution of the contract. The contractor demonstrate the advance payment has been used in this way by supplying copies of invoice or other documents to the Engineer.

The advance payment shall be repaid by deducting proporpionate amount from payments other wise due to the contractor, following the schedule of completed persentages of the works on a payment basis. The advance payment shall be repaid in full when the total certified value of the work reashes 90% of the inicial contract price No account shall be taken of the advance payment or its repayment in assesing valuations of work done, variations, price adjusment, compensation events, bonuses or liquidated damages.
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