CONTRACT PAYMENTS

&
VARIATIONS

Out Line
Contract Payments, Types
Authority Levels
Types of Payment
Definition of Variation Orders
ICTAD Document to be refer for VO
Authority for VO and contents of VO
Valuation procedure for VO
Procurement Guile Lines

Contract Payment - Definition

All payment to the Contractor for the completion of
entire scope of work(including Variations)

Who has to authority to approve the payments

-Engineer

The Engineer is the person named in the

Contract Data( or any other competent person
appointed by the Employer and notified to
Contractor)
who
is
responsible
for
administrating and supervising the execution of
the work. Such person may be Engineer,
Architect or any other technical person . In the
absence of such appointment the Employer
himself( Defined under A. General, Section 3 of
Who
actually
pays:,ICTAD/SBD/01
- The Employer
Condition
of Contract
- page no
The
36) Employer is the party named in the Contract
Data who employs the Contractor to carry out
the Works ( Defined under A. General, Section 3
of Condition of Contract, ICTAD/SBD/01 - page no

Who are we?

- Engineers Representative
A Person appointed from time to time by
the
Engineer under sub clause 5.1
(ICTAD/SBD/01)
Authority of Engineers
Representative
- Written authority delegated by the
Engineer (Clause 5.2, ICTAD/SBD/01)

Obligation of the Engineer

Being impartial
Fair in determinations
Consistency in affairs
Administrating and supervising the execution of the work
Issuing decisions, certificates and orders

Obligation of the Employer

Employs the Contractor to carry out the
works. (The Contractor is carrying out
works for the Employer)
Shall give possession of all parts of the
site to the Contractor.
Timely payment
- Delay Payment

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