Section 14(4) in Tamil Nadu Transparency In Tenders Rules, 2000
(4)The tender documents shall clearly indicate the payment terms conforming to the following requirements.-(a)[ Payment shall ordinarily be effected only on completion of delivery against the orders placed:Provided that payment of advance may be made in the following cases for sufficient reasons to be recorded by the Procuring Entity:-(i)in cases where goods, commodities and services are procured through imports requiring opening of Letter of Credit;(ii)in cases where there is single source of supply only and where the practice of paying advance is already in vogue as a standard practice;(iii)in cases of purchase during natural calamities and emergencies declared by the Government under clause (a) of section 16 of the Act;(iv)in cases of purchase of life saving drugs; and(v)in cases where the standard commercial terms of supply require payment of advance by the Procuring Entity, such as the machinery and equipment manufacturers for sugar and cement plants.](b)Mobilization advances may be paid in the case of construction or supply and installation contracts of a large and complex nature, for a value exceeding rupees one crore:Provided that such mobilization advances shall not ordinarily exceed ten per cent of the value of the contract, shall be secured against irrevocable bank guarantee and shall be recovered in the subsequent bills payable along with interest as per specific terms set in the tender documents provided that in case of mobilisation advances for plant machinery and equipment, they are also hypothecated to the Governor of Tamil Nadu in addition to other requirements;(c)Percentage of payment to be withheld for the effective performance of the contract.Provided that withheld amounts do not exceed ten per cent of the total value of contract;(d)Payment terms for imports shall be based on standard terms of international trade and the payment may be effected through irrevocable Letters of Credit drawn on banks;
