03-13-2010, 08:38 PM
Dear
You must have to check following things before making payment.
===Contract/agreement with contractor.
===3 way relation ( Client+Contractor+Consultant)
===In modern business client assigned the work to contractor and ===consultant verify or certify the work on behalf of client.
===Bills or invoices submitted by contractor, consultant certified the work done, contractor make the payment.
Furthermore, you go thru all term and conditions of agreement with contractor and consultant and consider following points
a) Contract value/price
b) Minimum billing (Some time there is condition of minimum billing is there)+ payment terms
c) Mobilization Advance (before start of project, certain percentage of amount should be given as advance, will be adjusted against subsequent billing).
d) Retention money ( a certain percentage of money will be deducted from bill and normally paid after the getting completion of project certificate)
e) Deduction of tax if applicable.
f) Escalation or de-escalation clause (type of escalation, material like cement or Diesel)
other you have to check
if applicable
Advance payment Guarantee from Contractor.
Performance Guarantee from Contractor.
Retention payment guarantee from Client.
Hope it will serve your purpose, ask again if you have any further query.
Regards
Tariq
You must have to check following things before making payment.
===Contract/agreement with contractor.
===3 way relation ( Client+Contractor+Consultant)
===In modern business client assigned the work to contractor and ===consultant verify or certify the work on behalf of client.
===Bills or invoices submitted by contractor, consultant certified the work done, contractor make the payment.
Furthermore, you go thru all term and conditions of agreement with contractor and consultant and consider following points
a) Contract value/price
b) Minimum billing (Some time there is condition of minimum billing is there)+ payment terms
c) Mobilization Advance (before start of project, certain percentage of amount should be given as advance, will be adjusted against subsequent billing).
d) Retention money ( a certain percentage of money will be deducted from bill and normally paid after the getting completion of project certificate)
e) Deduction of tax if applicable.
f) Escalation or de-escalation clause (type of escalation, material like cement or Diesel)
other you have to check
if applicable
Advance payment Guarantee from Contractor.
Performance Guarantee from Contractor.
Retention payment guarantee from Client.
Hope it will serve your purpose, ask again if you have any further query.
Regards
Tariq
