Section 113
Provisions On Payment And Settlement Of Advance
(1) Advance payment may be made to a supplier, construction entrepreneur, service provider or consultant as provided for in the procurement contract, subject to Section 52A. of the Act.
(2) The supplier, construction entrepreneur, service provider or consultant shall regularly provide monthly statements setting out the bank account to which amounts of advance paid pursuant to sub- rule (1) and purposes of expenses to the public entity.
(3) In making payment of advance pursuant to sub-rule (1), such advance payment shall be made after obtaining from the supplier, construction entrepreneur, service provider or consultant a bank guarantee so issued by a commercial bank that it covers such an advance and is payable to that entity immediately upon a request made by such entity if he or she fails to perform the work in accordance with the contract and a counter-guarantee issued by a commercial bank within Nepal if such a bank guarantee is issued by a foreign bank.
(4) The validity period of the bank guarantee referred to in sub-rule (3) shall be more than at least one month beyond such period within which the settlement of advance has to be made as set forth in the procurement contract.
(5) The public entity shall deduct the advance paid pursuant to sub-rule (1) from every running bill or other bill, invoice as provided for in the procurement contract.
(6) If the advance payment referred to in this Rule cannot be settled due to failure of the supplier, construction entrepreneur or service provider to perform the work under the procurement contract within the period set forth in such a contract, the public entity shall settle the advance by obtaining the bank guarantee amount referred to in sub-rule (3) from the concerned bank and also recover from him or her an interest at the rate of ten percent on such advance.
(7) The public entity shall, while importing goods through a letter of credit, settle the advance amount applied for opening the letter of credit, within thirty days of the receipt of goods by its office.
(8) If the concerned supplier who is to supply the goods cannot supply the goods or goods cannot be obtained within the time specified for their delivery, the letter of credit shall generally be cancelled and the advance for the opening of the letter of credit shall be settled by taking back the amount collected in the bank for it.
(2) The supplier, construction entrepreneur, service provider or consultant shall regularly provide monthly statements setting out the bank account to which amounts of advance paid pursuant to sub- rule (1) and purposes of expenses to the public entity.
(3) In making payment of advance pursuant to sub-rule (1), such advance payment shall be made after obtaining from the supplier, construction entrepreneur, service provider or consultant a bank guarantee so issued by a commercial bank that it covers such an advance and is payable to that entity immediately upon a request made by such entity if he or she fails to perform the work in accordance with the contract and a counter-guarantee issued by a commercial bank within Nepal if such a bank guarantee is issued by a foreign bank.
(4) The validity period of the bank guarantee referred to in sub-rule (3) shall be more than at least one month beyond such period within which the settlement of advance has to be made as set forth in the procurement contract.
(5) The public entity shall deduct the advance paid pursuant to sub-rule (1) from every running bill or other bill, invoice as provided for in the procurement contract.
(6) If the advance payment referred to in this Rule cannot be settled due to failure of the supplier, construction entrepreneur or service provider to perform the work under the procurement contract within the period set forth in such a contract, the public entity shall settle the advance by obtaining the bank guarantee amount referred to in sub-rule (3) from the concerned bank and also recover from him or her an interest at the rate of ten percent on such advance.
(7) The public entity shall, while importing goods through a letter of credit, settle the advance amount applied for opening the letter of credit, within thirty days of the receipt of goods by its office.
(8) If the concerned supplier who is to supply the goods cannot supply the goods or goods cannot be obtained within the time specified for their delivery, the letter of credit shall generally be cancelled and the advance for the opening of the letter of credit shall be settled by taking back the amount collected in the bank for it.