Common use of Mobilisation Advance Clause in Contracts

Mobilisation Advance. 11.2.1 Mobilisation advance shall be generally 5% of original contract value payable in two equal instalments or as mentioned in the Special Conditions of Contract and shall be payable in one or two equal instalments as specified in Special Conditions of Contract. The first instalment shall be paid after mobilisation has started and next instalment shall be paid after satisfactory utilization of earlier instalment. Moblisation advance shall be paid interest free against acceptable Bank Guarantee from a scheduled commercial bank in India. The Contractor, once the 50% of mobilisation advance has been recovered, shall have a one time option to reduce the Bank Guarantee for the mobilisation advance by the amount recovered. Advance against Plant and Machinery

Mobilisation Advance. 11.2.1 Mobilisation advance Advance shall be generally 5% of original contract value payable in two equal instalments installments or as mentioned in the Special Conditions of Contract and shall be payable in one or two equal instalments as specified in Special Conditions of Contract. The first instalment installment shall be paid after mobilisation has started and next instalment installment shall be paid after satisfactory utilization of earlier instalmentinstallment. Moblisation Mobilisation advance shall be paid interest free against acceptable Bank Guarantee from a scheduled commercial bank in India. The value of Bank Guarantee taken towards security of “Mobilisation advance” shall be equal to the advance taken by the contractor. The Contractor, once the 50% of mobilisation mobilization advance has been recovered, shall have a one one-time option to reduce the Bank Guarantee for the mobilisation mobilization advance by the amount recovered. Advance against Plant and Machinery