Procedure for the procurement of consulting service - DOH

DOH CUSTOMIZED PROCUREMENT MANUAL VOLUME 4 2010
ADVANCE PAYMENT FOR MOBILIZATION
Can the Procuring Entity make an advance payment for mobilization to the consultant?
Yes, it can. The Procuring Entity may make an advance payment to the consultant in an amount
that shall not exceed fifteen percent (15%) of the contract amount to cover the cost of
mobilization. The advance payment shall be made only upon the submission of a written request
by the consultant together with an irrevocable standby letter of credit issued by an entity
acceptable to the Procuring Entity and of an amount equal to the advance payment (Annex “F”
of the revised IRR).
How can the Procuring Entity recover the advance payment it made to a consultant?
The Procuring Entity must recover the advance payment by deducting from the progress
payments to the consultant such sum as agreed during contract negotiations until the advance
payment shall have been fully liquidated within the duration of the contract (Annex “F” of the
revised IRR).
The consultant, for its part, may reduce his standby letter of credit or guarantee instrument by
the amounts refunded in the advance payment.
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