Work out advance payment recovery instantly with clear inputs, formula shown and shareable results.
An advance payment is recovered by deducting a percentage from interim payments across a defined progress window, typically starting at 20% and completing before final payment. The recovery rate must be high enough to clear the advance before the contract ends.
Advance amount
Advance = Contract value x Advance %
Recovery rate
Recovery rate = Advance % / (Recovery end % - Recovery start %) x 100
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.
To let the contractor use the advance for mobilisation, materials and early works, which is the reason for granting it.
Almost always, by an advance payment guarantee for the full unrecovered amount, reducing as recovery proceeds.