Usages of mobilisation advance in construction
This query is : Resolved
05 January 2022
Hi sir. We are facing a typical case in statement received from contractor on utilisation of mobilisation advance. Client has provided interest free MA to Contractor for the costs of mobilisation of resources.
The WO was given in Sept 2019 and MA was released in stages in Oct 2019 and Aug 2020. However, the works were delayed due to COVID pandemic, plot handover by Client etc. The works commenced in Jul'20 post receipt of all clearances and contractor started receiving payment for work done through RA Bills from Nov'20 onwards.
Now, contractor was asked to submit a detailed utilisation statement of MA released by Client. In the MA utilisation statement submitted by contractor, (i) the salary of staffs during COVID (ii) a fixed amount for each month as HO overhead from Apr-20 to till date (iii) The premium paid on mobilisation BG / CAR policy etc.
Can the salary, HO overhead , premiums as claimed by Agency can be considered as a part of the MA utilisation statement?
The WO was given in Sept 2019 and MA was released in stages in Oct 2019 and Aug 2020. However, the works were delayed due to COVID pandemic, plot handover by Client etc. The works commenced in Jul'20 post receipt of all clearances and contractor started receiving payment for work done through RA Bills from Nov'20 onwards.
Now, contractor was asked to submit a detailed utilisation statement of MA released by Client. In the MA utilisation statement submitted by contractor, (i) the salary of staffs during COVID (ii) a fixed amount for each month as HO overhead from Apr-20 to till date (iii) The premium paid on mobilisation BG / CAR policy etc.
Can the salary, HO overhead , premiums as claimed by Agency can be considered as a part of the MA utilisation statement?
05 January 2022
No, such expenses not related to mobilisation of resources.
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