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Forfeiture of Performance Bond in favor of the Procuring Entity

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Forfeiture of Performance Bond in favor of the Procuring Entity

Post by zeffgervace on Wed Sep 07, 2011 4:52 pm

hello po..

ask lang po sna kmi kung meron po ba tayong cnusunod na guidelines or any basis na pwede nating panghawakan in forfeiting the performance bond of a bidder who had committed an unlawful act? Or is it allowable to forfeit the bond in favor of the Procuring Entity as penalty for his actions? Question

We have this bidder who claimed to have used the specified type of materials. However, upon inspection, it was found out that the materials used were all sub-standard. After a series of discussion with the winning bidder claiming that he was oblivious with the type of materials bought, the BAC refused to accept the items and recommended for the termination of the contract.

In this case, please enlighten us regarding this matter. This is the first time we had encountered such problem Sad

Thank you so much and more power..

zeffgervace
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Re: Forfeiture of Performance Bond in favor of the Procuring Entity

Post by engrjhez® on Thu Sep 08, 2011 1:45 pm

zeffgervace wrote:hello po..

ask lang po sna kmi kung meron po ba tayong cnusunod na guidelines or any basis na pwede nating panghawakan in forfeiting the performance bond of a bidder who had committed an unlawful act? Or is it allowable to forfeit the bond in favor of the Procuring Entity as penalty for his actions? Question

We have this bidder who claimed to have used the specified type of materials. However, upon inspection, it was found out that the materials used were all sub-standard. After a series of discussion with the winning bidder claiming that he was oblivious with the type of materials bought, the BAC refused to accept the items and recommended for the termination of the contract.

In this case, please enlighten us regarding this matter. This is the first time we had encountered such problem Sad

Thank you so much and more power..

Yes, you have Sec.69.1 and 69.2 of the IRR:
69.1. In addition to the provisions of Rules XXI and XXII of this IRR, the Head of the
Procuring Entity, subject to the authority delegated to the BAC, if any, shall impose
on bidders or prospective bidders, the administrative penalty of suspension for one
(1) year for the first offense, and suspension of two (2) years for the second offense
from participating in the public bidding process, as well as disqualification from
further participating in the public bidding being undertaken by the procuring entity
concerned, where applicable, for the following violations:
x x x
f) Termination of the contract due to the default of the bidder.
x x x

69.2. In addition to the penalty of suspension, the bid security or the performance security
posted by the concerned bidder or prospective bidder shall also be forfeited
.

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engrjhez®
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Re: Forfeiture of Performance Bond in favor of the Procuring Entity

Post by zeffgervace on Fri Sep 09, 2011 9:54 am

Thank you very much po, engrjhez.

More power and god bless.. Very Happy

zeffgervace
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Male Number of posts : 7
Company/Agency : PhilHealth Regional Office
Occupation/Designation : Admin Services Asst
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