ARCHIVED Progress Payments

Attention! We’ve Moved! The Supply Manual has moved to the CanadaBuys website. Check out the new landing page for the Supply Manual.

Attention! As part of the Acquisitions Program’s transformation agenda, PSPC is planning to archive and migrate the SACC manual to the CanadaBuys website. The SACC manual will continue to be available on the BuyandSell website to ensure continuity of service during this transition period. At this time, an initial version of the archived version of the SACC has been posted on CanadaBuys. We encourage you to go visit the site and get comfortable with the new format of the SACC at the following:

Archived - Standard Acquisition Clauses and Conditions Manual | CanadaBuys

We appreciate your continued feedback and cooperation during this transition.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

Legal text for SACC item

  1. Progress payments will be made not more frequently than once a month upon the following terms and conditions:
    1. Progress Claims shall be completed in full, including a brief report of the progress of the Work to the date of the claim, and submitted to Canadian Commercial Corporation (CCC) on form PWGSC-TPSGC 1111, Claim for Progress Payment.
    2. All the certificates appearing on the said form are to be signed by or for the respective persons indicated thereon.
    3. Payments will be made up to ____ percent of the claimed amounts approved by CCC, but in no event will cumulative payments exceed ____ percent of the Contract value.
    4. Each claim will show:
      1. expenditures during the claim period detailed in accordance with the basis and/or method of payment terms of the Contract;
        Note: Pro-rated profit not allowed.
      2. sales taxes (where applicable);
      3. Goods and Services Tax or Harmonized Sales Tax (where applicable);
      4. holdback at ____ percent.
        Note: Percentage factor to be shown on form CCC 747A.

Conditions Precedent to Payment

  1. No payment shall be made to the Contractor, unless and until:
    1. invoices, inspection notes and other documents prescribed by CCC are submitted in accordance with the terms of the Contract or instructions of CCC;
    2. with respect to all materials, parts, work in process or finished work, the cost of which has been paid by the Contractor and in respect of which payment is being made by CCC, the Contractor, if required to do so, establishes to the satisfaction of CCC that the materials, parts, work in process or finished work are free from all claims, liens, attachments, charges or encumbrances;
    3. with respect to all materials, parts, work in process or finished work, the costs of which have accrued in the accounts of the Contractor as a liability to be discharged in the normal course of business and in respect of which materials, parts, work in process or finished work payment is being made by CCC, the Contractor, if required to do so, establishes to the satisfaction of CCC that the payment to be made by CCC shall be used only for the purpose of discharging such liability and that upon such discharge the materials, parts, work in process or finished work shall be free from all claims, liens, charges or encumbrances; and
    4. in the case of payment in respect of finished work, such finished work has been inspected and accepted in accordance with the terms of this Contract.

Method of Payment

  1. Payment by CCC to the Contractor for the Work shall be made:
    1. in the case of a progress payment other than the final payment, within thirty (30) days following the date of receipt of a duly completed progress claim, form PWGSC-TPSGC 1111;
    2. in the case of a final payment, within thirty (30) days following the date of receipt of a duly completed final progress claim, form PWGSC-TPSGC 1111, or within thirty (30) days following the date on which the Work is accepted, whichever date is the later;
    3. in the case of a final payment against a 'fixed-price Contract', within thirty (30) days following the date of receipt of a final invoice together with supporting documentation.
    If CCC has any objection to the form of an invoice, within fifteen (15) days of its receipt, CCC shall notify the Contractor of the nature of the objection and payment shall be delayed until thirty (30) days after the objection is resolved to the satisfaction of CCC.

Liquidation

Except as provided in the Termination for Convenience clause, all progress payments shall be liquidated by deducting from any payment under this Contract, other than advance or progress payments, the unliquidated progress payments, or ____ percent of the amount invoiced, whichever is less. The Contractor shall repay to CCC any amounts required by a retroactive price reduction, after computing liquidations and payments on past invoices at the reduced prices and adjusting the unliquidated progress payments accordingly.

Title

  1. Title to the property described in this clause shall vest in CCC. Vestiture shall be immediately upon the date of this Contract, for property acquired or produced before that date. Otherwise, vestiture shall occur when the property is or should have been allowable or properly chargeable to this Contract.
  2. "Property" as used in this clause, includes all of the items listed in subsections (a) through (d) below by the Contractor that are or should be allowable or properly chargeable to this Contract under sound and generally accepted accounting principles and practices:
    1. parts, materials, inventories, and work in process;
    2. special tooling and special test equipment to which the U.S. government is to acquire title under any other clause of this Contract;
    3. nondurable (i.e. non-capital) tools, jigs, dies, fixtures, mods, patterns, taps, gauges, test equipment, and other similar manufacturing aids, title to which would not be obtained as special tooling under subsection (b) above; and
    4. drawings and technical data, to the extent that the Contractor or its subcontractors are required to deliver them to CCC by other clauses of this Contract.
  3. The Contractor may sell any scrap resulting from production under this Contract without CCC's approval, but the proceeds shall be credited against the Contract Price.
  4. To acquire for its own use or to dispose of property to which title is vested in CCC under this clause, the Contractor must obtain CCC's advance approval of the action and the terms. The Contractor shall
    1. exclude the allowable costs of the property from the costs of Contract performance; and
    2. repay to CCC any amount of unliquidated progress payments allowable to the property. Repayment may be by cash or credit memorandum.
  5. When the Contractor completes all of the obligations under this Contract, including liquidation of all progress payments, title shall vest in the Contractor for all property (or the proceeds thereof) not:
    1. delivered to, and accepted by, CCC under this Contract; or
    2. incorporated in supplies delivered to, and accepted by, the U.S. government under this Contract and to which title is vested in the U.S. government under this Contract.
  6. The terms of this Contract concerning liability for Government-furnished property ceases to apply to property to which the Contractor has acquired title solely under this clause.

Risk of Loss

Before delivery to and acceptance by CCC, the Contractor shall bear the risk of loss of or damage to property, the title to which vests in CCC under this Contract, except to the extent otherwise provided in the Contract. The Contractor shall repay CCC an amount equal to the unliquidated progress payments that are based on costs allowable to property that is damaged, lost, stolen, or destroyed.

Control of Costs and Property

The Contractor shall maintain an accounting system and controls adequate for the proper administration of property.

Reports and Access to Records

The Contractor shall promptly furnish to CCC reports, certificates, financial statements, and other pertinent information reasonably requested by CCC for the administration of this clause. CCC shall have the right at any reasonable time to examine the Contractor's records and accounts in regard to property.