Question

Mobilization advance up to certain percentage of cost of work is given to a contractor
1. On commencement of work at site for payment of loan taken by him
2. For the purchase of construction materials
3. For the payment of advances to labour and other staff
4. For all activities required to start the work at site on finalization of the contract documents

Answer 1

Correct Answer - Option 4 : For all activities required to start the work at site on finalization of the contract documents

Explanation:

(i) Mobilization advance up to 10% of Tendered Amount” shall be paid to the contractor on submission of no revocable Bank Guarantee for an amount of 110% (One hundred ten percent) of an amount of mobilization advance demanded, from a nationalized / Scheduled Bank.

(ii) It is provided for all activities required to start the work at site on finalization of the contract documents.