Payment Modes in Contract of Work Tendering: Advance Payments Contracts

Description

This Skill Bit shows that advance payment contracts provide initial funding to contractors or suppliers before project work begins, aiding in mobilization and procurement. Secured by bonds or guarantees, these contracts specify repayment terms and allowable uses of funds, promoting transparency and accountability. They safeguard project owners with assurances against contractor default, ensuring funds are utilized as intended and contractual obligations are met, fostering beneficial project initiation and execution.

Duration approx. 4 Min.

Tier: proficiency