Invoicing & Payment Practices Print

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.