City Engineering and Contracting LLC

City Engineering and Contracting L.L.C.
Sharjah - Dubai
United Arab Emirates

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Subcontractor & Supplier Policy and Code of Conduct Print E-mail

Legal Structure
All subcontractors and suppliers must be legally registered as an entity either within UAE or in their respective countries and must function within the boundaries of applicable laws of the countries in which they are registered/operate. Any subcontractors or supplier ceasing to meet any statutory and/or other requirement of the country in which they are doing business, CEC reserves the right to immediately cancel all its outstanding orders with that supplier/subcontractor as well as terminate its agreement.

Subcontractor and Supplier code of conduct and ethics
CEC expects the highest standards of integrity and conduct from its suppliers/subcontractors in all its business relationship with CEC. Any ethical or integrity issues observed or encountered during the course of this relationship shall be bought to the notice of CEC Top management immediately. Subcontractors/Suppliers will adopt appropriate processes to prevent offering any illegal gratification in the form of bribes either in cash or in kind in the course of all dealings with us. All suppliers/Subcontractors should disclose any relationship if exists with any of the CEC employees. CEC reserves the right to take all appropriate actions or remedies as may be required under the circumstances.

CEC's procurement objective is to buy products and services which have the best prices, quality, delivery, and technology.
CEC is solely responsible for selecting suppliers/subcontractors, obtaining quotations against Tenders and awarding LPO/contracts for products, equipment, services, software and/or materials. CEC will issue a LPO/contract agreement for all products and/or services it wishes to procure. Work should not begin until a formal LPO/contract is received and signed by both parties. Supplier performing a service or supplying products without the proper authorization would do so at its own cost and risk.

CEC will treat information received from suppliers/subcontractors in a responsible fashion, and expects suppliers to treat information received from CEC in the same manner. Suppliers/subcontractors should not disclose or release information about relationships with CEC without obtaining formal permissions.

Relationship disengagement
CEC reserves the right to cancel all LPO and/or contracts with a Supplier/Subcontractors in cases where there is an unethical practice used, code of conduct violation, supplier bankruptcy or insolvency, failure to perform , ownership transfer and/or any other reason deemed fit for disengagement. CEC would follow a structured approach for disengagement to ensure smooth transitioning.

Invoicing & Payment Practices Print E-mail

Invoicing policies

Suppliers, Subcontractors must submit valid and correct Invoices based on valid Purchase Orders or Contracts issued by CEC. Invoices must be raised in accordance with the terms and conditions prevailing in LPO/Contract agreements.

Invoices must contain details like contract or LPO reference, period and date, currency of invoice and term of payment, project name or activity to which it relates.
Invoices must be submitted and marked for the attention of Finance Department at the project site office to which the invoice relates or to Head Office, as applicable.

Each Invoice should contain valid supporting documents to enable Invoice approval and timely payment processing by CEC. Invoices with invalid, inaccurate or with no supporting documents (ex.: Delivery note) will render the Invoices as incomplete and the same will be returned to the Supplier/Subcontractors. No Payment will be made against these incomplete or inaccurate invoices.
Reconciliation will be performed on a periodic basis (Monthly) based on the internal account statement & supplier/subcontractors account statement.

Suppliers/subcontractors should provide balance confirmation statements, as and when requested by Financial department of CEC.

Payment policies

Advance Payments: Advance Payments are made only to subcontractors and in special cases, if CEC approves. Advances to subcontractors are paid up to a maximum of 10% of contract value against an advance payment bank guarantee issued by subcontractor from a reputed bank with strong financial standing. These Advances will be recovered out of progress payment invoices of contractors at the rate of 10% of each Invoice.

Invoice Payments: Payments shall be made on due date against a valid invoice received by CEC and approved by CEC concerned Manager, in accordance with the Financial Delegation of Authority.  All subcontractor's invoices must be supported by a Progress Payment Certificate signed off by the Project Management.

Payments shall be made:

  • In accordance with the contract or purchase order terms and conditions,
  • Only after verification of receipt of materials and/or services, and acceptance of the invoice by the concerned User as correct, and, 
  • Shall not exceed the value of the work actually accomplished or materials actually received.

10% or 5% Retention is withheld from each progress payment invoice of contractor and such retention is released in two stages viz:  50% of Retention on physical completion, handover of site and the balance 50% is paid after the expiry of the defects liability period and signing the final acceptance certificate.


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We at City Engineering Contracting LLC are committed and dedicated to retain our high standard deliverables and to keep servicing our clients by providing them with the quality works and services that we’ve been always renowned with and accredited by them.

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