Common use of Payment Term Clause in Contracts

Payment Term. Payment will be made on half yearly basis (50% of order value of AMC), after completion of six months service, subject to their satisfactory performance to be certified by customer, or alternatively, 50% of order value may be released in advance, on submission of Bank Guarantee against 50% of order value of AMC. The penalty imposed if any as per the service level agreement while signing the contract will be deducted from the AMC charges. The firm will give a performance Bank Guarantee of 10% of order value if exceeding Rs. 1 Lac, valid for AMC period at the time of accepting the contract.