Bills & payments
Mobilisation Advance Calculator — Interest & Recovery Schedule
Many departments pay an interest-bearing mobilisation advance — a percentage of the contract value, against a bank guarantee — to help the contractor set up the site. It is recovered, with interest, by deductions from the running bills.
Enter the contract value, advance percentage, interest rate and expected billing to see how much is recovered from each bill and the net cash you'll receive month by month.
Contract and advance
CPWD: up to 10%
Simple interest on the balance
Assumes one running bill a month and steady progress.
Recovery
Recovered pro rata from bills as work progresses between these two points.
Advance you receive
₹0
How this is worked out
The advance is recovered from running bills in proportion to work done: nothing until progress reaches the start point, then evenly until the end point. Simple interest is charged each month on the balance still outstanding.
Recovering the advance faster (e.g. by billing more early on) cuts the interest. Departments usually want a bank guarantee for 110% of the advance, which also costs bank charges — add those to your cost.
Frequently asked questions
How is a mobilisation advance recovered?
By deductions from the running account bills, usually starting once a set share of the work is done and finishing before a later milestone, together with the interest due. The contract sets the percentages.
Is interest charged on a mobilisation advance?
Usually yes — most government contracts charge simple interest on the outstanding advance until it is recovered. Check the rate in your tender conditions.
Figures are for planning. The conditions in your tender document or contract always take precedence.
Let the calculators fill themselves in
With a free Digi Karya account, these tools pull in your own contracts, tenders, bills and documents — and you also get licence and GST expiry reminders, a tender workspace, milestone billing and EMD & bank guarantee tracking.