Stage wise Payment for Works Sample Clauses
The 'Stage wise Payment for Works' clause defines how payments for a project or contract will be made in installments based on the completion of specific stages or milestones. Under this arrangement, the contractor or service provider receives partial payments after successfully finishing predefined portions of the work, such as after completing the foundation, structure, or finishing stages in a construction project. This clause ensures that payments are tied to measurable progress, reducing financial risk for the client and incentivizing timely completion of each phase by the contractor.
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Stage wise Payment for Works. 10.5.1 Within 7 days of receipt of the Stage wise Statement from the Contractor pursuant to Clause 1 0.4, the P r o j e c t Engineer shall broadly determine the amount due to the Contractor and recommend the same to KDA for release to the Contractor 9 0 (ninety) percent of the amount so determined as part payment against the Stage wise Statement, pending issue of the Interim Payment Certificate (the “IPC”) by the Project Engineer. Within 7 business days of the receipt of recommendation of the Project Engineer, KDA shall make electronic payment directly to the Contractor’s designated bank account.
10.5.2 Within 21 days of the receipt of the Stage wise Statement referred to in Clause 10.4, the Project Engineer shall determine and shall deliver to KDA and the Contractor an Interim Payment Certificate (the “IPC”) certifying the amount due and payable to the Contractor, after adjusting the payments already released to the Contractor against the said statement.
10.5.3 In cases where there is a difference of opinion as to the value of any component/stage, the Project Engineer’s view shall prevail.
10.5.4 Notwithstanding the terms of this Clause 10.5 or any other clause of the Agreement, no amount shall be certified by the P r o j e c t Engineer for payment until the Performance Security due in accordance with Clause 4.2 has been provided by the Contractor and has been verified and accepted by KDA.
10.5.5 Payment by KDA shall not be deemed to indicate KDA's acceptance, approval, consent or satisfaction with the work done.