GSIDC has also introduced Clause of Mobilisation Advance

Mar 27, 2015, 9:41 AM IST




NOTE : Applicable only to those works where the estimated cost is more than Rs.2.00 Crore



The Employer shall pay Mobilisation Advance (loan) to the Contractor only for the work amounting above Rs.2.00 crore and if the same is requested by the Contractor in writing within one month from the order to commence the work, towards costs of Mobilisation Advance in respect of the work in a lumpsum amount equivalent to 10% of the tendered amount, at 10% simple interest rounded down to nearest thousand. Payment of the advance will be due under separate certification by the Engineer after (i) execution of the form of Agreement by the Parties thereto and (ii) Provision by the Contractor of one or more unconditional and irrevocable Bank Guarantees by a Nationalized / Scheduled bank payable at Panaji, Goa in an aggregate amount equal to the advance loan, such bank guarantee / guarantees to remain effective until the advance loan, (part of the advance loan in case the Contractor has submitted more than on guarantee) has been repaid by the Contractor out of the interim payment certified by the Engineer. The Bank Guarantee should be submitted in the format prescribed by the Employer.


The advance loan shall be used by the Contractor exclusively for mobilization in connection with the work. Should the Contractor misappropriate any portion of the advance loan, it shall become due and payable immediately and no further loan will be made available to the Contractor thereafter. The Advance shall be released in not less than 2 installments. The interest on the advance shall be calculated from the date of payment to the date of recovery, both days inclusive.



Recovery of Mobilisation Advance shall be made by the deduction from the Contractor’s bills commencing after 1st 10% of the gross value of the work is executed and paid, on pro-rata percentage basis to the gross value of the work built beyond ten percent in such a way that the entire advance is recovered by the time 80% of the gross value of the contract is executed and paid, together with interest due and the entire outstanding amount upto the date of recovery of installments.


The Contractor may at his option, repay the advance loan earlier by increasing the amount of deduction indicated above. If the contractor furnishes more than one bank Guarantee, they will be released by the Employer one by one in such a manner that the total amount of Bank Guarantee left in hand with the Employer will be sufficient to cover the outstanding amount of advance.

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Disclaimer: Translated by Directorate of Official Language, Government of Goa. Note: In any case for legal interpretation, English version will prevail.