Doing Business in Iran (Dayarayan) - Pars Times

In cases where supply of a part of materials is undertaken by and purchased by
the contractor at his own expense and a part of which is undertaken by the client
who assigned the works, the value of materials put at the disposal of the
contractor shall be added to the total gross turnover and then the premium is
calculated in accordance with Clause 3-1.
Price of equipment imported from outside the country and purchased by the
contractors through opening letters of credit, are not subject to deduction of
premium. Also, price of exclusive and special materials, elevators and
installations, machinery and steel in steel structure works contracts the provision
of which are the responsibility of clients, fabrics in contracts of sewing, asphalt
in contracts of road making and asphalt works, moqette, floor covering and
cabinets in cases where they are supplied by the employer and delivered to the
contractor free of charge, shall not be deemed as assigning materials and their
prices shall not be added to the total turnover.
In cases where the subject of contract is offering services and the type of work
requires that a part of work shall be carried out mechanically (with mechanical
tools and machinery belonging to the contractor) and a part be carried out
manually, the premium of the part (per cent) done mechanically shall be
computed on the basis of 7% and the percentage of the works done manually on
the basis of 15%.
Note: Should the mechanical tools and equipment be supplied by the client and
given to the contractor without receiving any fee, with regard to the fact that
work is done on wage basis, the pertinent premium shall be computed in
accordance with Article 1 of the Decree dated 13 April, 1991 i.e. on the basis of
15%.
According to Note 6 of the Decree dated 13 April, 1991, the insurance
premiums payable by the contractors and consultant engineers who are parties to
the contracts entered into with Housing Foundation of Islamic Revolution, shall
be 1% less than the amounts mentioned in Articles 1 and 2 of the said Decree i.e.
14% and 6% shall be considered as the insurance premium plus 1/9 of it as
unemployment premium.
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