FAILURE TO POST PERFORMANCE BOND WITHIN THE PRESCRIBED PERIOD

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FAILURE TO POST PERFORMANCE BOND WITHIN THE PRESCRIBED PERIOD

Post by mika07 on Wed Jan 25, 2012 4:42 pm


What should be done if the winning bidder failed to post performance bond with the prescribed period?

A number of bidders failed to post their performance security. Probably because the POs were issued towards the end of the year, they did not have time to comply. The treasurer can no longer issue an OR for 2011 since she had already closed her cash books and OR. The banks and the surety companies can no longer issue an anti dated certificates. Almost all of the POs were already delivered by the bidders.

Is there a remedy for this? Can the BAC just forgo of the posting of the performance bond? Would there be a violation of he procurement law?



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Re: FAILURE TO POST PERFORMANCE BOND WITHIN THE PRESCRIBED PERIOD

Post by Jovinal on Thu Jan 26, 2012 6:34 am

There is a violation in your procurement procedure done because posting of performance bond should be done before the issuance of PO and Notice to Proceed and then Delivery.
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Re: FAILURE TO POST PERFORMANCE BOND WITHIN THE PRESCRIBED PERIOD

Post by alpha1 on Fri Jan 27, 2012 9:32 am

I agree with jovinal that your procedure is irregular.

After the issuance of a NOA, the bidder shall be required to post the performance security within ten (10) calendar days and then the PE shall enter into contract with the same winning bidder within the same ten (10) day period. (Section 37.2.1 of the Revised IRR)

Section 40.1 of the same IRR even gave the PE the authority to forfeit the bid security of the winning bidding bidder if it failed to post the required performance security and can even sanctions said bidder as provided in the IRR and other existing applicable, except that such failure, refusal or inability is through no fault of the said bidder

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