CANCELLATION OF CONTRACT TO PE

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CANCELLATION OF CONTRACT TO PE

Post by jene on Mon Dec 20, 2010 2:52 pm

hi guys,,its been a long time i have consulted in this forum. my concern is we wanted to cancel the contract "SUPPLY & INSTALLATION OF GOODS" because of too much delay in the side of the PE and we havent received any partial payment for the delivery of the unit.what is the simplest process that we could cancel the contract? is it possible even if the PE doesnt want to terminate the contract?

thanks!
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Re: CANCELLATION OF CONTRACT TO PE

Post by engrjhez® on Wed Dec 22, 2010 3:25 pm

jene wrote:hi guys,,its been a long time i have consulted in this forum. my concern is we wanted to cancel the contract "SUPPLY & INSTALLATION OF GOODS" because of too much delay in the side of the PE and we havent received any partial payment for the delivery of the unit.what is the simplest process that we could cancel the contract? is it possible even if the PE doesnt want to terminate the contract?

thanks!
I recommend you write the HOPE of the details of the concern. You ask on your letter why payment was delayed considering you already have delivered (have you?) the goods/services. Under the ARTA 2007, you should be answered within 5-10 working days. Only if you have exhausted all efforts to proceed with contract implementation must you initiate termination by default (of the PE). Smile
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Re: CANCELLATION OF CONTRACT TO PE

Post by jhmcbobby on Tue Jul 07, 2015 1:16 pm

after contract termination, how do you award remaining uncompleted works under infra?

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Re: CANCELLATION OF CONTRACT TO PE

Post by engrjhez® on Tue Jul 07, 2015 1:43 pm

jhmcbobby wrote:after contract termination, how do you award remaining uncompleted works under infra?

You may resort to Negotiated Procurement - Takeover of Contracts:

53.3. Take-Over of Contracts. Take-over of contracts, which have been rescinded or terminated for causes provided for in the contract and existing laws, where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities.

53.3.1. The contract may be negotiated starting with the second lowest calculated/highest rated bidder for the project under consideration at the bidder’s original bid price.

53.3.2. If negotiation fails, then negotiation shall be done with the third lowest calculated/highest rated bidder at his original price. If the negotiation fails again, a short list of at least three (3) eligible contractors shall be invited to submit their bids, and negotiation shall be made starting with the lowest calculated/highest rated bidder.

53.3.3. Authority to negotiate contracts for projects under these exceptional cases shall be subject to prior approval by the Heads of the Procuring Entities concerned, within their respective limits of approving authority.



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Re: CANCELLATION OF CONTRACT TO PE

Post by jhmcbobby on Wed Jul 08, 2015 6:47 am


Engrjhez:

Do we need HOPE approval before going into negotiation as stated in 53.3.1?

53.3.1 stated that negotiation would be "....at the bidder’s original bid price", what if we award at the remaining budget of the project, since portion of the project was paid to the contractor whose contract was terminated?

Thank You.

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Re: CANCELLATION OF CONTRACT TO PE

Post by engrjhez® on Wed Jul 08, 2015 7:27 am

jhmcbobby wrote:
Engrjhez:

Do we need HOPE approval before going into negotiation as stated in 53.3.1?

53.3.1 stated that negotiation would be "....at the bidder’s original bid price",  what if we award at the remaining budget of the project, since portion of the project was paid to the contractor whose contract was terminated?

Thank You.

Prior approval from the HOPE is still necessary (Sec. 48.1, IRR). It includes the approval of the budget for the remaining portions of works. The general rule is that we negotiate under the same price as that previously awarded (but terminated). So, there is a need to estimate the remaining portions based on the pricing of the previous contract, and not simply award the remaining budget on negotiation.
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Re: CANCELLATION OF CONTRACT TO PE

Post by jhmcbobby on Wed Jul 08, 2015 9:21 am

Sir after computing the remaining portions and seeking HOPE approval, can we negotiate this with the next lowest bidder or do we subject this to a new negotiation with at least 3 prospective bidders?

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Re: CANCELLATION OF CONTRACT TO PE

Post by engrjhez® on Sat Jul 09, 2016 10:57 pm

The IRR is clear: negotiate with the second LCB/HRB (Sec. 53.3.1)
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