Section 123
Payment Of Bills Or Invoices
(1) The procurement contract may provide that in making payment of a running bill or any other bill or
invoice, the public entity may, as per the conditions of contract, make payment on any or all of the following bases:
(a) On monthly basis,
(b) On the basis of the actual work performed as technically measured and recorded in the measurement book,
(c) If the procurement contract sets out the work performance indicator, upon achievement of such indicator, and if no such indicator is set out, on the basis of the work performed,
(d) On the basis of the quantity of the work handed over or completed, and
(e) Pursuant to sub-rule (1) of Rule 122 or on the basis of conditions of the letter of credit.
(2) In order to receive payment of a running bill or any other bill or invoice, the supplier, construction entrepreneur, service provider or consultant shall submit such documents as may be required by the procurement contract.
(3) The concerned authority shall, not later than thirty (30) days, approve the running bill or any other bill, invoice and documents submitted pursuant to sub-rule (1), and the public entity shall make payment of such a bill or invoice as per the procurement contract within that period.
(4) The public entity shall, in making payment pursuant to sub-rule (1), deduct, for retention money, five percent of the amount specified in the running bill or other bill or invoice.
222Provided that if the procurement contract, in view of any specific nature of procurement except a construction work, provides that retention money is not required to be deducted, such an amount shall not be deducted.
(5) If the procurement contract provides that where prompt payment of the bill or invoice is made by the public entity, the supplier, construction entrepreneur, service provider or consultant shall provide discount of a certain amount or percentage of such payment, the public entity shall make such payment only after deducting such discount.
(6) The public entity may provide the following provisions in the procurement contract:
(a) That if amount of payment requires to be corrected for the reason that anything written in any previous running bill or any other bill, invoice has been written erroneously or otherwise, the public entity may itself or at the request of the concerned supplier, construction entrepreneur, service provider or consultant correct or alter such amount of payment in the subsequent running bills or any other bills or invoices, and
(b) That if the supplier, construction entrepreneur, service provider or consultant does not perform the work in accordance with the conditions of the procurement contract, the public entity may deny or deduct the payment under a running bill or any other bill, invoice.
Inserted by the Third Amendm
(7) The public entity shall make the payment referred to in sub-rule (1) within the period specified in the procurement contract. If it does not make payment within that period, it shall pay interest thereon as per the procurement contract.
(8) While making payment of more than twenty-five thousand rupees to the supplier, construction entrepreneur, service provider or consultant ………., it shall be made through the account payee cheque.
invoice, the public entity may, as per the conditions of contract, make payment on any or all of the following bases:
(a) On monthly basis,
(b) On the basis of the actual work performed as technically measured and recorded in the measurement book,
(c) If the procurement contract sets out the work performance indicator, upon achievement of such indicator, and if no such indicator is set out, on the basis of the work performed,
(d) On the basis of the quantity of the work handed over or completed, and
(e) Pursuant to sub-rule (1) of Rule 122 or on the basis of conditions of the letter of credit.
(2) In order to receive payment of a running bill or any other bill or invoice, the supplier, construction entrepreneur, service provider or consultant shall submit such documents as may be required by the procurement contract.
(3) The concerned authority shall, not later than thirty (30) days, approve the running bill or any other bill, invoice and documents submitted pursuant to sub-rule (1), and the public entity shall make payment of such a bill or invoice as per the procurement contract within that period.
(4) The public entity shall, in making payment pursuant to sub-rule (1), deduct, for retention money, five percent of the amount specified in the running bill or other bill or invoice.
222Provided that if the procurement contract, in view of any specific nature of procurement except a construction work, provides that retention money is not required to be deducted, such an amount shall not be deducted.
(5) If the procurement contract provides that where prompt payment of the bill or invoice is made by the public entity, the supplier, construction entrepreneur, service provider or consultant shall provide discount of a certain amount or percentage of such payment, the public entity shall make such payment only after deducting such discount.
(6) The public entity may provide the following provisions in the procurement contract:
(a) That if amount of payment requires to be corrected for the reason that anything written in any previous running bill or any other bill, invoice has been written erroneously or otherwise, the public entity may itself or at the request of the concerned supplier, construction entrepreneur, service provider or consultant correct or alter such amount of payment in the subsequent running bills or any other bills or invoices, and
(b) That if the supplier, construction entrepreneur, service provider or consultant does not perform the work in accordance with the conditions of the procurement contract, the public entity may deny or deduct the payment under a running bill or any other bill, invoice.
Inserted by the Third Amendm
(7) The public entity shall make the payment referred to in sub-rule (1) within the period specified in the procurement contract. If it does not make payment within that period, it shall pay interest thereon as per the procurement contract.
(8) While making payment of more than twenty-five thousand rupees to the supplier, construction entrepreneur, service provider or consultant ………., it shall be made through the account payee cheque.