NPM 128-2014

Requesting Entity: National Development Company (NDC)

Issues Concern: Progress Billing/Payment



Whether progress billing/payment is allowed in the procurement of supply and delivery of services for the installation of an accounting system/software.

[T]he procurement law and its associated rules and procedures admit of procurement transactions allowing partial deliveries and progress payment for each delivery of the goods and services covered by the contract. The terms and conditions for which must be properly indicated in the SCC, particularly, Clauses 6 and 10. The prohibition on advance payment covers only those services not yet rendered or for supplies and materials yet to be delivered and not on partial payments for any part of service or supplies and materials that have already been delivered and accepted by the procuring entity.

[P]ayment based on progress billing is allowed, provided that the goods have been delivered or installed in accordance with the terms and conditions of the contract, and the same was duly inspected and accepted by the procuring entity as evidenced by a certification to that effect