SECTION 161

(1) Advances for supplies may be granted to cover commitments made to execute works, supplies or services under the contract. (2) Each contract must determine the special administrative or technical conditions for advance payments, in accordance with the rules provided for in this code. (3) Advance payments for supplies shall be made upon production of disbursement supporting documents verified by the Project Owner or the Delegated Project Owner. (4) Advance payments for supplies shall be subject to the deposit, on the site or its annex, of materials, raw materials or manufactured objects intended for the execution of the contract provided that; (a) they were procured on a freehold basis and effectively paid for by the Administration’s contracting partner; (b) they are allotted such as to leave no doubt regarding their destination; (c) they can be inspected by the Project Owner or the Project Manager designated for that purpose. (5) Advance payments for supplies made in respect of prior expenditure should be monitored in the co-contractor’s accounts until they are cleared. They shall be reimbursed, at a rate stated in the contract, by deduction from the amounts subsequently owed to the holder as payment on account or balance. The reimbursement rate shall consider the proportion of items that gave rise to advance payment in the part of the contract already executed. (6) In any case, the company shall be responsible for guarding the materials for which the advance payment for supplies was made until the acceptance of the works. 63 SUB-SECTION III PAYMENTS ON ACCOUNT