C&W (INDIA) – CLIENT SOLUTIONS (PM)

STANDARD OPERATING PROCEDURE

Procedure No.: PM-391 Effective Date: April 21, 2006

CONTRACTOR INVOICING
PROCEDURES

Prepared & Issued by:

Dinesh Wadehra
Associate Director
Client Solutions – Project Management, Operations
Cushman & Wakefield (India) Pvt. Ltd.

Revision History:
Revision Date Description
0 06 Jan 2006 Original Issue
1 Apr 21, 2006 Quarterly review – Modifications to Section 2, 5.7

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 C&W (INDIA) – CLIENT SOLUTIONS (PM)
STANDARD OPERATING PROCEDURE

Procedure No. PM – 391 CONTRACTOR INVOICING PROCEDURES

1. PURPOSE
The purpose of this Standard Operating Procedure (SOP) is to set forth the provisions for
documentation, retention, payment requirements and terms for payment to the contractors.

2. APPLICABILITY/SCOPE
This SOP is applicable to all projects managed by Cushman & Wakefield (India) – Client
Solutions (Project Management), throughout India, in the capacity of Project Management
Consultants, unless stated otherwise in contract documents by this specific component
being kept out of the scope of C&W.

3. RESPONSIBILITY
3.1 C&W Project Manager is responsible for the implementation of this SOP on the
project site.
3.2 C&W Project Manager is the designated authority responsible for signing off on all
certificates of payment during the course of project, prior to sending those to Client
with recommendation for release of payment.
3.3 C&W Billing Engineer/ designated representative is responsible for processing
invoice, checking it for its form and accuracy, measurement verification and signing
off as first reviewer, prior to forwarding it to Project Manager.

4. DEFINITIONS
No special definitions apply to this SOP.

5. PROCEDURE
5.1 The billing cycle for each vendor shall be in accordance with the terms and conditions
of the contract. Project Manager may like to segregate the timing of invoice
submission by various vendors to avoid overloading for measurement verification and
processing paperwork for certification of payment.

5.2 Certification of Mobilization advance:

As per the contract conditions, contractor is entitled for mobilization advance, as
mentioned in fiscal aspect of contract documents. For certification of mobilization
advance, the vendor shall normally be required to submit the following documents in
approved format:
5.2.1 Bank Guarantee for Mobilization Advance.

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5.2.2 Performance Bank Guarantee.

5.2.3 Insurance cover for Contractor’s All Risk Policy, Workmen Compensation Policy
and Third Party Liability.
The documents mentioned above shall be checked and signed by Project
Coordinator/ Billing Engineer and forwarded for final checking and signature to
Project Manager.
The Certificate of Payment (COP) for Mobilization Advance shall be on the
standardized format.

5.3 Certification of Running bills:

The vendor during the due course of execution of project shall submit Running Bills for
certification and payment. The running bills shall be supported with signed
measurement sheets by the vendor. The following process shall be adopted for
certification of running bills, unless otherwise specified.

5.3.1 Material Advance: The vendor shall submit delivery challans for materials at
site against which material advance can be claimed per contract/ PO terms
and conditions. These challans shall be cross verified by the Billing
Engineer/Project Coordinator at site.
5.3.2 Prior to submitting actual invoice for payment, the Contractor shall submit a
“Pencil copy” of the invoice that will include the summary sheet and the
detailed measurements. The Project coordinator/ Billing engineer shall, within
7 days of its receipt, review the “Pencil copy”, verify measurements and give
its comments on the invoice. Measurements taken for approved changes,
which have not yet been incorporated on the GFC drawings, shall be jointly
inspected by C&W representative and Contractor representative. This joint
inspection record along with the “Pencil copy” shall become the backup
documentation for the actual invoice
5.3.3 Based on the comments on “Pencil copy”, the contractor shall revise and
submit its actual invoice along with detailed measurements to Project
Manager in triplicate (or as stated in contract). The invoice shall include Main
summary sheet stating work done, deductions to be made, amount released
till date and amount invoiced that period and copy of measurements and
abstract sheet on C&W format.
5.3.4 The Project coordinator/ Billing engineer shall review the invoice for form,
accuracy and completeness including required attachments. The Billing
engineer will also check the invoice with reference to the Pencil copy to make
sure that all the changes in the Pencil copy have been incorporated in the
actual invoice submitted by contractor.
5.3.5 If invoice is correct in all above aspects, Billing engineer will attach a routing
sheet on the three copies (1 original +2 xerox), sign and forward it to Project

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Manager for certification. The Project Manager shall cross-check

approximately 15% of the measurements and rates as mentioned in the
submitted running bills and upon getting fully satisfied, certify the payment.
Before sending Certificate of payment to Client, Project Manager will forward
one copy to Project coordinator/ Billing engineer and send other two copies (1
original and 1 xerox) to the Client for approval. The whole process of review,
measurement verification and certification shall not take more than 14 days
from the date of receipt of “Pencil copy” of Invoice, unless stated otherwise in
the contract documents.
5.3.6 Works executed shall be certified as per the payment terms mentioned in the
PO issued to the vendor.
5.3.7 During the certification of running bills if any discrepancy from drawings and
specifications is observed, then certain amount against the non-conforming
work shall be held back till the work is rectified as per the specifications and
agreed conditions.
5.3.8 During the certification of running bills, retention amount to the extent of as
indicated in the fiscal conditions of contract shall be held back.
5.3.9 Depending on the contract conditions, a certain percentage may also be
withheld to take care of submission of Handing over Documents, Test
Certificates and attending to snags by the vendor.
5.3.10 During certification of running bills if any debit notes were raised during the
Invoice period against the vendor by C&W Team towards non-compliance to
safety measures, housekeeping or in-discipline etc, the same amount as
mentioned in the debit note shall deducted from the running bill.
5.3.11 No payment against any additional work shall be recommended for release
unless a Change order amendment has already been issued thus revising the
contract amount for that change
5.3.12 The Certificate of Payment (COP) for Running Bills shall be on the
standardized format.

5.4 Certification of Final bills:

Prior to submission of final bill, the vendor is supposed to submit and complete
the following activities:
• Submit the Project Close-out/ Handing-over Documentation as per the
approved format.
• Rectify all items on the snaglist.
The procedure for certification of final bill is as follows:
5.4.1 The vendor shall submit the final bill along with the final measurement
sheets as “Pencil copy”.

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5.4.2 The Project Coordinator/Billing Engineer shall crosscheck the bills and
measurement sheets. Repeat steps 5.3.2 to 5.3.4.
5.4.3 If the invoice is correct in all respects, Project Coordinator/ Billing
Engineer shall submit to the Project Manager the final bill, following
same procedure as followed under 5.3.5 for running bills, along with the
following annexures:
a) Full and Final No Claim Certificate by contractor
b) Final Bill Invoice with measurement sheets submitted by the
Vendor
c) Certificate of Payment against final bill.
d) Transmittal showing submission of Handing-over Document and
As-built drawings – duly signed by Client.
e) Handing Over Certificate (in the approved format) - duly signed
and stamped by all concerned parties.
f) Bank Guarantee against Retention Amount.
g) Warranty Certificate
h) Purchase Order issued by Client to the Vendor.
i) Signed Snaglist.
j) Virtual Completion Certificate – issued by Architect/Consultant (If
issued separately).
k) Change Order Approvals (if any).
5.4.4 The Project Manager after crosschecking the documents and satisfying
itself of the accuracy of the bill shall sign the Certificate of payment and
submit it to the client, recommending release of payment in favour of
contractor. Considering that final bill will need exhaustive checking as
compared to running bills, the whole process of review, measurement
verification and certification shall not take more than 28 days from the
date of receipt of “Pencil copy” of Invoice, unless a different time period
is specified in the contract documents.
The COP for Final bill shall be on the standardized format.

5.5 IMPORTANT: In order to standardize the format of Application number on each

Certificate of payment, following numbering system shall be followed;
C&W Project #/ Three initials of contracting co./ Sequential Invoice number/ Type of
Bill (MA for Mobilization advance, RAB 01 for Running Bill 01, RAB 02 for Running
Bill 02, F for Final bill). A few sample application numbers for COP at different stages
shall look like this:
Certificate for Mobilization Advance - S05009/SEW/01/MA

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Certificate for First Running bill - S05009/SEW/02/RAB 01

Certificate for Second Running bill - S05009/SEW/03/RAB 02
Certificate for Final bill - S05009/SEW/04/F
5.6 C&W shall maintain Invoice tracker, Payment summary sheet and Retention Money
tracker for all the vendors along with a detailed Cost report. The extent of detail in the
cost report may vary from site to site depending upon Client specific needs. However,
at the minimum, the components indicated in the standardized format must be
tracked on all projects.
5.7 In the event of Cost Management component being kept out of the scope of C&W
contract with Client, C&W shall still maintain Invoice tracker and Payment summary
log if measurements are being verified by C&W representative.

6. RECORDS
All documentation related to Contractor invoicing shall be kept in project files under
relevant file number.

7. ASSOCIATED FORMATS
• Invoice Routing sheet
• Certificate of Payment for Mobilization advance
• Certificate of payment for Running bills
• Certificate of payment for Final bill
• Final bill checklist
• Full and Final No Claim certificate
• Invoice tracker
• Retention money tracker
• Payment summary
• Cost report

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