Invoicing & Payment Practices

ALDAR considers suppliers as an important stakeholder in its business. It expects suppliers to follow best invoicing practices. ALDAR has a philosophy of effective and timely processing and payment of all Invoices.

Suppliers must comply with the following policies and practices:- 

Invoicing policies

Suppliers, contractors and consultants must submit valid and correct Invoices based on valid Purchase Orders or Contracts issued by ALDAR. Invoices must be raised in accordance with the terms and conditions prevailing in PO/Contract documents.

Invoices must contain details like contract or purchase order reference, period and date, currency of invoice and payment, project or activity to which it relates, and supplier’s bank details like bank account number, bank name and address and swift or sort code where applicable.

Invoices must be submitted and marked for the attention of Finance Department at the project site office to which the invoice relates or to Head Office, as applicable.

Each Invoice should contain valid supporting documents to enable Invoice approval and timely payment processing by ALDAR. Invoices with invalid, inaccurate or with no supporting documents will render the Invoices as incomplete and the same will be returned to the Supplier. No Payment will be made against these incomplete or inaccurate invoices. Any discrepancy observed for the invoices shall be handled as per ALDAR procedures.

Reconciliation will be performed on a periodic basis based on the internal account statement & supplier account statement.

Suppliers should provide balance confirmation statements, as and when requested by ALDAR.

Payment policies

Advance Payments: Advance Payments are made only to contractors (Real Estate development) and in special cases, if ALDAR approves. Advances to contractors are paid upto a maximum of 10% of contract value against an advance payment bank guarantee issued by contractor from a reputed bank with strong financial standing. These Advances will be recovered out of progress payment invoices of contractors at the rate of 10% of each Invoice.

Invoice Payments: Payments shall be made on due date against a valid invoice received by ALDAR and approved by ALDAR's concerned Manager, in accordance with the Financial Delegation of Authority.  All Contractor's invoices must be supported by a Progress Payment Certificate signed off by the Project Management Consultant/Project Director/Contractor.

Payments shall be made:  

• In accordance with the contract or purchase order terms and conditions,
• Only after verification of receipt of materials and/or services, and acceptance of the invoice by the concerned User as correct, and,
• Shall not exceed the value of the work actually accomplished or materials actually received.

10% Retention is withheld from each progress payment invoice of contractor and such retention is released in two stages viz:  50% of Retention on physical completion, handover of site and the balance 50% is paid after the expiry of the defects liability period and signing the final acceptance certificate. No retention is paid against bank guarantee.

ALDAR will pay its suppliers by wire transfer to the designated bank account of the supplier. Suppliers should provide accurate bank account details like Account Number, Beneficiary Name, Account Currency, SWIFT Code, Sort Code, Routing Number, or any other specific instructions as applicable.

In case where supplier request ALDAR to pay the invoices into a designated bank a/c from where it has obtained finances and ALDAR has signed a confirmation of payment addressed to such a Bank, ALDAR will not make payments to any other Bank A/c of the supplier other than the above unless the supplier obtains an No objection certificate (NOC) from the previous Bank.

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