1. 2.A. Budgeting and Payment Procedures for All other Types of Contracts
Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım
Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey
This project is co-financed by the European Union and the Republic of Turkey
2.A. Budgeting and Payment Procedures for All other Types of Contracts

2. Contents
This project is co-financed by the European Union and the Republic of Turkey
A. Budgeting and Payment Procedures for Global Price Service, FWC, Supply and Works contracts

3. Global Price Service Payments (1)
This project is co-financed by the European Union and the Republic of Turkey
Pre-financing: Maximum 60% of the contract value
Within 45 days from the date of invoice/request of payment
Required Documents:
Signed contract
Request for payment
Financial guarantee (for the full amount of the pre-financing payment) if the pre-financing amount exceeds € , the guarantee remains valid until the final payment has been made

4. Global Price Service Payments (2)
This project is co-financed by the European Union and the Republic of Turkey
Balance Payment: Maximum 40% of the contract
value if pre-financing payment has been made (Art. 3
Special Conditions)
Within 45 days of approval of the final progress report by the end recipient and the Contracting Authority and receipt of all relevant documents (invoice/request, etc.)
Required Documents:
Final progress report approved by end recipient and Contracting Authority
Final invoice/request
Final statement

5. Framework (fee based) Payments (FWC)(1)
This project is co-financed by the European Union and the Republic of Turkey
Fee based Service Contracts
Under Euros
up to Euros!!

6. Framework (fee based) Payments (FWC)(2)
This project is co-financed by the European Union and the Republic of Turkey
Pre-financing:Maximum 60% of the contract value
Within 45 days from the date of invoice/request of payment
Required Documents:
Invoice/Request for advance
Signed/initialled Financial offer
Initialled Specific ToRs and methodology (if any)
Financial guarantee if the amount of the advance is higher than €

7. Framework (fee based) Payments (FWC)(3)
This project is co-financed by the European Union and the Republic of Turkey
Interim Payments
In principle no interim payments are foreseen. However, if requested by the Framework Contractor, an interim payment may be foreseen if there is an extension of at least 6 months

8. Framework (fee based) Payments (FWC)(4)
This project is co-financed by the European Union and the Republic of Turkey
Interim payments (incase of an addendum)
As per the contract’s addendum
Within 45 days of receipt of the invoice/request
Required Documents
Countersigned addendum to the contract
Invoice/Request for interim
Signed/initialled Financial offer
Initialled Specific ToRs
Financial guarantee if amount of payment is higher than €

9. Framework (fee based) Payments (FWC)(5)
This project is co-financed by the European Union and the Republic of Turkey
Balance Payment : Up to 40% of the contract value, if an
advance pre-financing payment has been made.
Within 45 days of receipt of the invoice/request
Required Documents:
Invoice/Request for final payment
Supporting documents for invoiced costs (Original supporting documents for fee-based contracts)
Copies of or extracts from timesheets
Copy of the approved final report
End recipient certificate (“good for payment” granted by the recipient).

10. Budgeting and cost estimation for works and supplies contracts
This project is co-financed by the European Union and the Republic of Turkey
Budgeting and cost estimation
for works and supplies contracts

11. Phases of cost estimation
This project is co-financed by the European Union and the Republic of Turkey
Phase Purpose
1. Planning Determine Project Feasibility
Compare Alternatives and conceptual design
Costs benchmarks and Comparison costs similar projects
2. Preliminary Design Refine conceptual design
Draft Bill of Quantities (BoQ)
3. Final technical design Refine Bill of Quantities (BoQ)
Compare to Contract Bids
Get most realistic and accurate estimates in the planning phase

12. Example Bill of Quantities
This project is co-financed by the European Union and the Republic of Turkey

13. Investment cost breakdown
This project is co-financed by the European Union and the Republic of Turkey

14. Supply Payments- PRAG (1)
This project is co-financed by the European Union and the Republic of Turkey
Pre-financing: Maximum 60% of the contract price against provision of the
performance guarantee (kati teminat mektubu) up to %10 of the contract
price
Within 45 days from the date on which an admissible payment request
is registered by the competent department specified in the Special
Conditions. The payment request shall not be admissible if one or more
essential requirements are not met.
If the pre-financing payment exceeds € , the Contractor must
provide a financial guarantee for the full amount of the pre-financing
payment. Financial guarantee must remain valid until it is released 45 days
at the latest after the provisional acceptance of the goods (geçici kabul)

15. Supply Payments- PRAG (2)
This project is co-financed by the European Union and the Republic of Turkey
Requested Documents:
Invoice/request for payment
Original of signed contract
Original of performance guarantee (for the amount specified in the contract, in any case no more than 10% of the amount of the contract price).
Original of pre-financing guarantee for the full pre-financing amount, if applicable
Copy of insurance policy if required (see Special conditions, article 12)

16. Supply Payments- PRAG (3)
This project is co-financed by the European Union and the Republic of Turkey
Balance Payment: 40% of the contract price following provisional acceptance and/or final acceptance of the supplies.
Where only part of the supplies have been delivered, the 40% payment shall be calculated on the value of the supplies which have actually been accepted and the guarantee shall be released accordingly
45 days from the date on which an admissible payment request is registered by the competent department specified in the Special Conditions. The payment request shall not be admissible if one or more essential requirements are not met.

17. Supply Payments- PRAG (4)
This project is co-financed by the European Union and the Republic of Turkey
Required Documents
Invoice
Provisional and/or final acceptance certificate
Original guarantees
Originals of certificates of origin of the supplies
Copy of inspection test certificate( if applicable)(teftiş raporu)
Copy of warranty (if applicable)(üretim firması garantisi)

18. Supply Payments- PRAG (5)
This project is co-financed by the European Union and the Republic of Turkey
VERY IMPORTANT-Rule of Origin!
All goods supplied must satisfy the rule that they originate in EITHER a member state OR in one of the beneficiary countries as stated in the invitation to tender
The supplier shall present an official Certificate of Origin on provisional acceptance. Failure to comply with this obligation shall lead rejection of the payment for items

19. Supply Payments- PRAG (6)
This project is co-financed by the European Union and the Republic of Turkey
Non Performance Penalty:
If the Supplier fails under his own responsibility to deliver any or all of the goods within time limit specified in the contract, the Contracting Authority shall, without formal notice be entitled for every day which shall elapse between the expiry of the implementation period and actual date of completition, to liquidated damages equal to 5/1000 of the value of the undelivered supplies to a maximum of %15 of the total value of the contract. If the non-delivery of any of the goods prevents the normal use of the supplies as a whole, the liquidated danages shall be calculated on the basis of the total contract value.

20. Works Payments – FIDIC (1)
This project is co-financed by the European Union and the Republic of Turkey
Pre-financing :
Varies per individual contract. Shall be stated in the Special conditions, yet total amount of pre-financing, shall not exceed:
10% of the original contract price for the lump-sum advance referred to in Art. 44.1(a) of GC [lump sum advance enabling the Contractor to meet expenditure resulting from the commencement of the contract]
20% of the contract price for all the other pre- financing referred to in Article 44.1(b) of GC [if the Contractor affords proof of the conclusion of a contract for the purchase or order of materials, plant, equipment, machines and tools necessary for the execution of the contract, and of any other substantial prior expenses such as the acquisition of patents or study costs.]

21. Works Payments – FIDIC (2)
This project is co-financed by the European Union and the Republic of Turkey
Required Documents
Invoice/request for payment
Original of signed contract
Performance guarantee which shall be valid and enforceable until the Contractor has executed and completed the Works and remedied any defects
Original of pre-financing guarantee for the full pre-financing amount. The guarantee shall be valid and enforceable until the pre-financing has been completely repaid by the Contractor out of interim payments under the contract.
Copy of insurance required as stated in art. 14 of GC and/or in the Special conditions - Within 45 days of receipt of the request for payment and all relevant documents

22. Works Payments – FIDIC (3)
This project is co-financed by the European Union and the Republic of Turkey
Interim Payments: Varies per individual contract
Required Documents
Contractor’s Invoice
Performance Guarantee (if no Advance payment)
Interim Payment Certificate (IPC) issued by the Engineer determining the amount which the Engineer fairly determines to be due, based on Contractor’s Interim Statement together with supporting documents, including report on progress during this month
Originals of certificates of origin of the goods and materials used
Copy of inspection test certificate if applicable
Original of provisional or partial provisional acceptance certificate

23. Works Payments – FIDIC (4)
This project is co-financed by the European Union and the Republic of Turkey
Within 45 days of receipt of the request for payment and all
relevant documents
NOTES:
The interim payment certificates may include corrections or
modifications to any previous certificate.

24. Works Payments – FIDIC (5)
This project is co-financed by the European Union and the Republic of Turkey
Balance Payment : varies per individual contract
Within 45 days of receipt of the request for payment and all relevant documents
DOCUMENTS REQUIRED ARE IMPORTANT!

25. Works Payments – FIDIC (6)
This project is co-financed by the European Union and the Republic of Turkey
Required Documents:
Invoice/request for final payment
Contractor’s Final Statement
Final Payment Certificate issued by the Engineer, based on Contractor’s draft final statement together with the supporting documents
Copy of the Performance Certificate issued by the Engineer to the Contractor on completion of the Contractor’s obligations under the Contract (within 28 days after the latest of the expiry dates of the Defects Notification Periods, or as soon thereafter as the Contractor has supplied all the Contractor’s Documents and completed and tested all the Works, including remedying any defects)
5.Copy of inspection test certificate if applicable
6.Original Retention guarantee, if applicable

26. TYPICAL SEQUENCE OF PAYMENT EVENTS FIDIC
Contractor submits statement to Engineer
Engineer issues Interim Payment Certificate
Employer makes the payment to the Contractor
<28d
<56d
Engineer verifies the statement, Contractor submits information
INTERIM
PAYMENTS
FINAL
PAYMENT
Contractor submits draft final statement to Engineer
Contractor submits Final Statement and the discharge
Engineer issues Final Payment Certificate
Employer makes payment

27. SUMMARY FIDIC RULES OF PAYMENT Advance Payment (Contractor)
This project is co-financed by the European Union and the Republic of Turkey
Advance Payment (Contractor)
Submits Performance Guarantee to the Employer within 28 days from receiving Letter of Acceptance (or signing of Contract)
Submits Advance Payment Guarantee
Submits Application for Interim Payment Certificate No. 1 (advance payment)

28. SUMMARY FIDIC RULES OF PAYMENT Advance Payment (Engineer)
This project is co-financed by the European Union and the Republic of Turkey
Advance Payment (Engineer)
Receives copies and checks appropriateness of Performance Guarante and Advance Payment Guarantee
Issues Interim Payment Certificate No. 1 (advance payment)
The Employer receives and approves Performance Guarantee & informs the Engineer accordingly,
Effects payment of Interim Payment Certificate No.1 (advance payment)

29. SUMMARY FIDIC RULES OF PAYMENT Interim Payment Certificates
This project is co-financed by the European Union and the Republic of Turkey
Interim Payment Certificates
The Contractor submits Application for Interim Payment Certificate to the Engineer with all supporting particulars, as specified in the Contract.
The Engineer scrutinises with due diligence and issues Interim Payment Certificate within 28 days, or notifies the Contractor about possible defects as soon as practical.
The Employer reviews and effects payment within 56 days (from the date when the Engineer received the application) as certified or notifies the Engineer about possible defects as soon as practical.

30. SUMMARY FIDIC RULES OF PAYMENT
This project is co-financed by the European Union and the Republic of Turkey
Final Payment
Within 56 days after receiving the Performance Certificate the Contractor submits to the Engineer six copies of a draft final statement with supporting documents showing in detail:
The value of all work done in accordance with the Contract
Any further sums which the Contractor considers to be due under the Contract or otherwise.

31. SUMMARY FIDIC RULES OF PAYMENT
This project is co-financed by the European Union and the Republic of Turkey
The Contractor submits to the Engineer such further information as the Engineer may reasonably require and makes the changes to the draft as may be agreed with them.
The Contractor prepares and submits to the Engineer the final statement as agreed. This agreed statement is referred to as the “Final Account”.

32. SUMMARY FIDIC RULES OF PAYMENT Final Payment Certificate:
This project is co-financed by the European Union and the Republic of Turkey
Final Payment Certificate:
Within 28 days after receiving the Final Statement and written discharge the Engineer issues to the Employer the Final Payment Certificate, which shall state:
The amount which is finally due
After giving credit to the Employer for all amounts previously paid and all sums to which the Employer is entitled, the balance due from the Employer to the Contractor or the Contractor to the Employer, as the case may be
The Employer pays the Contractor the amount certified in the Final Payment Certificate within 56 days after the Employer receives the certificate

33. This project is co-financed by the European Union and the Republic of Turkey
Thank you!