Common use of Secured Advance Clause in Contracts

Secured Advance. 33.1 Payment of Secured Advance shall be applicable if provided in the Contract Data. 33.2 If applicable, the Engineer shall make advance payment against materials intended for but not yet incorporated in the Works and against provision by the contractor of an unconditional Bank Guarantee in a form and by a nationalized/ scheduled bank, in the name as stated in the Contract Data, in amounts equal to the advance payment. The guarantee shall remain effective until the advance payment has been adjusted, but the amount of the guarantee shall be progressively reduced by the amounts adjusted by the contractor. 33.3 The amount of secured advance and conditions to be fulfilled shall be as stipulated in the Contract Data. 33.4 The Secured Advance paid shall be recovered as stated in the Contract Data.