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CONTENTS - Central Public Works Department

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SECTION 37<br />

37.15 Advance Payments<br />

Ordinarily payments for services rendered or supplies made should be released only after the services<br />

have been rendered or supplies made. However advance payments may be made in following types of<br />

cases:-<br />

(i) Advance payment demanded by firms holding maintenance contracts for servicing of Airconditioners,<br />

computers, other costly equipments etc.<br />

(ii) Advance payment demanded by firms against fabrication contracts, turn key contracts etc.<br />

Such advance payments should not exceed the following limits:-<br />

(i) 30% of contract value to private firm.<br />

(ii) 40% of contract value to a State or <strong>Central</strong> Government agency or a PSU; or<br />

(iii) In case of maintenance contract, the amount should not exceed the amount payable for six months<br />

under the contract.<br />

While making advance payment as above, adequate safeguards in form of Bank guarantee etc. should<br />

be obtained from the firm.<br />

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