(ggggggggg)as a lump-sum advance enabling Contractor to meet expenditure resulting from the commencement of the contract;
(hhhhhhhhh)if Contractor affords proof of the conclusion of a contract for the purchase or order of materials, plant, equipment, machines and tools, necessary for the execution of the contract, and of any other substantial prior expenses such as the acquisition of patents or study costs.
The SCC shall state the amount of the advance payment which shall not exceed 30% of the total contract price.
(jjjjjjjjj)Provision to the Public Body by the procedure of the Performance Security in accordance with GCC Clause 58; and by
(kkkkkkkkk)Provision to the Public Body by the Contractor of an advance payment security in an amount equal to the advance payment they receive in the form of a certified cheque or unconditional bank guarantee at their option from a reputable bank or letter of guarantee written by a competent body organizing and overseeing small and micro enterprises established under the relevant law.
Advance payment security shall remain effective until the advance payment has been completely repaid by the Contractor out of interim payments under the contract.
The Contractor shall use the advance payment only to pay for Equipment, Plant, Materials, and mobilization expenses required specifically for execution of the Contract. The Contractor shall demonstrate that advance payment has been used in this way by supplying copies of invoices or other documents to the Engineer. Should the Contractor misuse any portion of the advance payment, it shall become due and repayable immediately and no further advance payments will be made to him.
Should the advance payment security cease to be valid and the Contractor fail to re-validate it, either a deduction equal to the amount of the advance payment may be made by the Public Body from future payments due to the Contractor under the contract, or the Public Body may apply the provisions of GCC Clause 58.6.
If the contract is terminated for any reason whatsoever, the guarantees securing the advance payment may be invoked forthwith in order to repay the balance of the advance payment still owed by the Contractor, and the guarantor shall not delay payment or raise objection for any reason whatever.
The advance payment security provided for in this GCC Clause shall be released as and when advance payment is repaid.
Further conditions and procedures for granting and repaying advance payment shall be as laid down in the SCC.
