Progress payments

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Item Information

ID
H1003C
Effective Date
2022-12-01
SACC Manual item status
Active
Parent Section
Terms of Payment
SACC Item usage
Full text

Revision History

Date Status ID Title
2022-12-01 Active H1003C Progress payments (2022-12-01) H1003C
2010-01-11 Superseded H1003C ARCHIVED: Progress Payments (2010-01-11) H1003C
2008-05-12 Superseded H1003C ARCHIVED: Progress Payments (2008-05-12) H1003C
2007-11-30 Superseded H1003C ARCHIVED: Progress Payments (2007-11-30) H1003C

Remarks – Recommended Use of SACC Item

Use the following clause in contracts when progress payments will be made based on cost incurred using progress claim form PWGSC-TPSGC 1111.

Use this clause in conjunction with H3022C or H3024C, if applicable; and in conjunction with H4500C in contracts for goods with a Canadian-based contractor.

For more information on progress payments, consult 4.70.30.15 of the Supply Manual.

Instructions to contracting officers:

  1. Complete the clause where required.
  2. Insert one of the following options in paragraph 2 of the clause. If the options provided below do not reflect the requirement, contracting officers may revise the paragraph accordingly.
    • Option 1: Use this paragraph in unit price contracts when the holdback will be paid upon delivery and acceptance of each item.
      "The balance of the amount payable will be paid in accordance with the payment provisions of the Contract upon completion and delivery of the item if the Work has been accepted by Canada and a final claim for the payment is submitted."
    • Option 2: Use this paragraph when payment will be made upon completion and acceptance of all work and deliveries.
      "The balance of the amount payable will be paid in accordance with the payment provisions of the Contract upon completion and delivery of all work required under the Contract if the Work has been accepted by Canada and a final claim for the payment is submitted."

Legal text for SACC item

  1. Canada will make progress payments in accordance with the payment provisions of the Contract, no more than once a month, for cost incurred in the performance of the Work, up to _____ percent of the amount claimed and approved by Canada if:
    1. an accurate and complete claim for payment using form PWGSC-TPSGC 1111, Claim for Progress Payment, and any other document required by the Contract have been submitted in accordance with the invoicing instructions provided in the Contract;
    2. the amount claimed is in accordance with the basis of payment;
    3. the total amount for all progress payments paid by Canada does not exceed _____ percent of the total amount to be paid under the Contract;
    4. all certificates appearing on form PWGSC-TPSGC 1111 have been signed by the respective authorized representatives.
  2. _________ (insert one of the options provided under the Remarks section above.)
  3. Progress payments are interim payments only. Canada may conduct a government audit and interim time and cost verifications and reserves the rights to make adjustments to the Contract from time to time during the performance of the Work. Any overpayment resulting from progress payments or otherwise must be refunded promptly to Canada.
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