Section 52A: Provisions Relating to Advance Payment

1) A public body may, after the conclusion of a procurement agreement, obtain an advance bank guarantee from the supplier, construction entrepreneur or service provider and provide an advance payment not exceeding twenty percent of the procurement agreement amount.

2) When providing an advance payment pursuant to sub-section (1), the first advance payment shall not exceed half of the approved advance payment amount, and the remaining amount may be provided based on the progress of the work.

3) Except in the case of sub-section (5) of Section 10, the advance payment shall be paid only through a bank account opened separately for the work for which the agreement was made.

4) The supplier, construction entrepreneur or service provider shall commence the work within thirty days from the date of receipt of the advance payment for the first time pursuant to sub-section (2).

5) The details of the purpose for which the advance payment pursuant to sub-section (2) has been spent shall be updated and provided to the concerned public body as prescribed.

6) If the advance taken pursuant to this section is not found to have been used for the relevant work, the advance bank guarantee taken in accordance with sub-section (1) shall be forfeited.

7) Other provisions relating to the advance shall be as prescribed.