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CONTENTS - Central Public Works Department

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SECTION 38<br />

(iii) The amount of advance payment against contract for supply of stores shall be restricted to 90% of<br />

the cost of stores, and the payment shall be made only against the despatch documents. Preinspection<br />

of the stores ordered should be ensured before making advance payment.<br />

(iv) Where advance payment is made, transit insurance must be obtained from the supplier and the<br />

advance must be against Guarantee of equal amount from a Scheduled Bank.<br />

(v) The officers drawing the money for making advance payment to suppliers of stores shall be<br />

responsible for its adjustment within a period of one month from the date of the drawal of advance.<br />

(vi) A second advance shall not be drawn for making advance payment to the firm/supplier unless<br />

the earlier advance, if any, made to the same firm/supplier has been adjusted.<br />

(vii) The amount of advance shall be drawn on a simple receipt, and debited to the suspense account<br />

“Contractors other Transactions/Advance payments” in the works abstract of stock or work<br />

concerned.<br />

(viii) The advance payment in cases not covered by the above conditions shall be made with the<br />

approval of the Director General (<strong>Works</strong>).<br />

243

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