ECOWAS Tenders Code 5. The total amount paid as advance payments under paragraphs 1 and 4 of this Article must not exceed Thirty (30) per cent of the initial value defined as the basic contract cost excluding all amendments or increases resulting from a price review. Article 74: Progress Payments 1. Payments for contracts are made through progress payments except for contracts of less than three months duration, in which case progress payments are optional. 2. The amount of progress payments should not exceed the value of the goods, works or services (including intellectual services) for which they are made, less repayment of the advance payments, if any, and subject to deduction of the amount retained as guarantee, under the terms of Article 70 of this Code. 3. When progress payments are made against predetermined execution phases and not against physical completion, the contract may determine, in the form of a percentage of the initial price, the amount of each progress payment. 4. General Conditions of Contract specify for each type of contract the periods or the technical phases of contract execution at which progress payments shall be made. 5. A supplier, contractor or service provider shall not use the supplies for which the advance or progress payments have been made for any works or services other than those specified in the contract. Breach of this provision may lead to termination of the contract by the procuring entity. 6. In the event of disagreement as to the amount to be disbursed as progress payment, the amount shall be calculated on the temporary basis of the payment approved by the procuring entity for the execution of the contract. Where progress payment is less than the final amount due to the contractor, supplier or service provider, the latter shall not be entitled to interest in respect of the outstanding difference. Progress payment may not be considered as final payment. The beneficiary shall be deemed indebted in outstanding amount until settlement of the balance of the contract amount. Article 75: Modalities of Payment 1. Payment can be effected by means of cheque or bank transfer in accordance with the provision of the Financial Regulations. 2. The Contracting Authority must certify all progress and final payments and arrange for payments to be made within a period not exceeding Thirty (30) calendar days starting from the date of the submission of an invoice. Article 76: Delayed Payment When payments have not been made within the period set forth above, the contractor, supplier, service provider or the Consultant is entitled to the payment of interest from the expiry of the contract time for payment at a rate specified in the Special Conditions of Contract., based on the discount rate adopted by the central bank of the member state where the contract is being executed, increased by one point. Final Page 35