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Reduction of Quantities

Post by mbdr on Tue Mar 31, 2009 2:27 pm

Gdpm to everybody!

I would like to seek your opinion on this matter...

We have a bidding for construction materials. During the first bidding, quoted price for Lot A or lot 1 (cement) exceeded the ABC (Aproved Budget for the Contract). Since the end-user cannot wait for another schedule of bidding for the said item as they badly needed the same in order to start a certain project, the latter wrote to BAC requesting for approval to reduce the quantity of the item to be within the ABC.

As BAC member Sirs, how will you treat this matter sir? Is it ok to pass a resolution to reduce (let's say from 150 bags to 140 bags) the item? Will it not affect to the project/ construction?

Any opinions, answers and views on this are most welcome!! Thank you Question

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Re: Reduction of Quantities

Post by riddler on Tue Mar 31, 2009 2:53 pm

mbdr wrote:Gdpm to everybody!

I would like to seek your opinion on this matter...

We have a bidding for construction materials. During the first bidding, quoted price for Lot A or lot 1 (cement) exceeded the ABC (Aproved Budget for the Contract). Since the end-user cannot wait for another schedule of bidding for the said item as they badly needed the same in order to start a certain project, the latter wrote to BAC requesting for approval to reduce the quantity of the item to be within the ABC.

As BAC member Sirs, how will you treat this matter sir? Is it ok to pass a resolution to reduce (let's say from 150 bags to 140 bags) the item? Will it not affect to the project/ construction?

Any opinions, answers and views on this are most welcome!! Thank you Question

That is allowed under Sec. 35.2 of the IRR. The BAC can modify or adjust the scope of work...... provided, that the ABC is maintained. In your case, you reduced the quantity of the item necessary to reduce or adjust the scope of work of the project.

If it is really badly needed and time is of the essence, you may request the BAC to make a resolution recommending the use of Alternative Method of Procurement under Sec. 53 (b), and provide inspection reports to verify your claims.


Last edited by tianchon,ruel on Tue Mar 31, 2009 3:14 pm; edited 1 time in total
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Re: Reduction of Quantities

Post by RDV @ GP3i on Tue Mar 31, 2009 2:56 pm

mbdr wrote:
We have a bidding for construction materials. During the first bidding, quoted price for Lot A or lot 1 (cement) exceeded the ABC (Aproved Budget for the Contract). Since the end-user cannot wait for another schedule of bidding for the said item as they badly needed the same in order to start a certain project, the latter wrote to BAC requesting for approval to reduce the quantity of the item to be within the ABC.

As BAC member Sirs, how will you treat this matter sir? Is it ok to pass a resolution to reduce (let's say from 150 bags to 140 bags) the item? Will it not affect to the project/ construction?

The BAC cannot, through a Resolution, award the contract but at a reduced quantity, so that the ABC is not exceeded.

Since the ABC has been exceeded, the BAC has to declare a failure of bidding. It is only during the re-bidding that the BAC can reduce the quantity of the items of cement to be procured, but the amount of the ABC shall be retained.
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Re: Reduction of Quantities

Post by riddler on Tue Mar 31, 2009 3:18 pm

yeah, RDV is right. THe BAC should declare a failure of bidding first, before adjusting the scope of work.
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Re: Reduction of Quantities

Post by mbdr on Tue Mar 31, 2009 3:22 pm

Thanks Sir RDV and others for a very brief and simplified answer!

Mbdr sunny

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Re: Reduction of Quantities

Post by ziaragabriel on Fri Aug 12, 2011 6:16 pm

sirs/madam,
can we also reduce the quantity after the bidding? the reason is...... the supplier cannot anymore deliver the original quantity due to increase in prices. Tnx a lot!
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Re: Reduction of Quantities

Post by RDV @ GP3i on Sat Aug 13, 2011 9:15 am

ziaragabriel wrote:sirs/madam,
can we also reduce the quantity after the bidding? the reason is...... the supplier cannot anymore deliver the original quantity due to increase in prices. Tnx a lot!

If an award has already been made to the supplier if is the suppliers risk if there are increase in prices before delivery is made. If the supplier is unable to deliver the goods, then appropriate sanctions should be imposed on the said supplier. Reducing the quantity after the bidding and award is not allowed.
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Re: Reduction of Quantities

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