Contractor can request advance payment or partial payment before delivering products/services (rare but possible).
Applicability: Applies when contract allows progress payments or advances.
Key Requirements
Request advance payment with supporting documentation
Government retains right to offset advances against final invoice
Interest may be charged on advances if contract specifies
Maintain accounting for advance use
Common Issues & Pitfalls
Assuming advance payment is guaranteed (it is discretionary)
Not budgeting for offset against final payment (reduces cash flow)
Misusing advance funds outside contract scope
Failing to account for advance costs in proposal
Contractor Guidance for Your Bid
Advance payments are rare and discretionary. Only request if you have legitimate cash flow need (e.g., purchasing materials upfront). Government will demand security/insurance. Do not assume you will get it.