Glossary · A
Advance Payment
Money paid to a contractor or supplier before work starts or material arrives, usually recovered later from running bills.
What is Advance Payment?
An advance payment is a share of the contract value paid to a contractor or supplier before work starts or material is delivered. On works contracts it is usually called a mobilisation advance, and it gives the contractor cash to move equipment, set up the site or buy raw materials.
Practical example
A developer awards a ₹1,00,00,000 contract for earthwork with a 10% mobilisation advance. The contractor receives ₹10,00,000 upfront to move excavators to the site and build labour camps. The developer then recovers the advance in proportion from later RA bills.
In SuperWise
In SuperWise a work order carries the mobilisation amount agreed with the contractor. Each RA bill raised against it shows a mobilisation deduction, which recovers the advance, and the amount is recovered pro rata across bills or in one lump sum as the contract terms agree. A proposal can also record the advance a contractor asks for.
See SuperWise on your own project
Book a demo and we walk through your site data.