MODE OF PAYMENT

REQUIREMENTS

Prepared by:

CAPILLAS, ELLEN-ZYRA R.
PROMPT PAYMENT DISCOUNT
incentives to encourage customers to
pay their invoices not just on time,
but early.
INTEREST
• SERVICES and SUPPLIES

If an agency does not make

payment to qualified small
business concerns for the
acquisition of supplies or
services by the required
payment date, it must pay
interest.
INTEREST
• CONSTRUCTION

Agencies are required to pay

contractors and design
professionals for public works
contracts exceeding an amount
strictly in accordance with the
contract.
 UNEXPENDED FUNDS
Upon termination of a contract, the
agency shall require and promptly
initiate action to recover any
unexpended funds in the contractor's
possession
REIMBURSING CONTRACTORS
FOR TRAVEL AND PER DIEM
When the company finds it
appropriate to reimburse
contractors for travel,
lodging, and meals, a
provision allowing such
reimbursement must be
included in the contract.
TERMS OF
REFERENCE
WHAT IS A TERMS OF
REFERENCE?

“scope allowed to persons

conducting an enquiry of any
kind”.
WHAT IS ITS PURPOSE?

In practice, a ToR is a written

document presenting the purpose
and scope of the service to be
provided, the methods to be used,
the standard against which
performance is to be assessed or
analyses are to be conducted, the
resources and time allocated, and
the reporting requirements.
TOR serves as:
• A communication tool between
the consultant and client
• A tool for monitoring the
contract during project
implementation
• A key part of the contract
documentation
• A tool for project evaluation
TOR should provide of:
• Project Background
• Project Objectives
• Issues to be explored &
analyzed against certain criteria
• Implementation methodology to
be applied
• Expertise required
• Reporting requirements
• Work plan, including activity
schedules
THANK YOU!