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Section 53.3 Take-Over of Contracts

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Section 53.3 Take-Over of Contracts

Post by rtdd on Fri Feb 24, 2012 12:58 pm

What would be the procedures if the contract has been terminated? Does it refer to emergency cases, two failed biddings among others?

Please help. Thanks.

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Re: Section 53.3 Take-Over of Contracts

Post by RDV @ GP3i on Fri Feb 24, 2012 3:45 pm

rtdd wrote:What would be the procedures if the contract has been terminated? Does it refer to emergency cases, two failed biddings among others?

Please help. Thanks.

NO, it refers to cases where you have already entered into a contract with a winning bidder, but during contract implementation the procuring entity terminated the contract for reasons provided for in the said contract, such as failure of the supplier/contractor to deliver or complete the contract in accordance with the agreed terms.

If the contract has already been terminated but the NGA/LGU/GOCC wanted still to pursue the same contract (to prevent damage to or loss of life, etc.), under Sec. 53.3 the procuring entity is allowed to enter into negotiated procurement with the 2nd LCB when the original contract was bidded out. If there is failure in negotiation with the 2nd LCB, then you proceed to the 3rd LCB. If there is again failure, the procuring entity will shortlist at least 3 bidders and require them to submit proposals and negotiate starting with the lowest.
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Re: Section 53.3 Take-Over of Contracts

Post by rtdd on Fri Mar 02, 2012 3:05 pm

Noted sir. Thanks.

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Re: Section 53.3 Take-Over of Contracts

Post by Jovinal on Fri Mar 02, 2012 10:12 pm

In the case of Take Over of Contract, what will happen if for example the previous contractor have implemented 40% before contract termination, Do we have to adjust the ABC for the remaining 60% unfinished portion as a bases for negotiation ?
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Re: Section 53.3 Take-Over of Contracts

Post by Jovinal on Sat Mar 03, 2012 8:48 am

Any comments please. Any agencies have tried Take Over of Contract ?
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Re: Section 53.3 Take-Over of Contracts

Post by RDV @ GP3i on Sat Mar 03, 2012 8:49 am

Jovinal wrote:In the case of Take Over of Contract, what will happen if for example the previous contractor have implemented 40% before contract termination, Do we have to adjust the ABC for the remaining 60% unfinished portion as a bases for negotiation ?

Yes, to reflect (deduct) the completed portion, but adjusted ABC must still be based on original cost estimates of the procuring entity. The procuring entity shall negotiate also with the 2nd LCB based on his original bid price less the completed portion.
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Re: Section 53.3 Take-Over of Contracts

Post by Jovinal on Sat Mar 03, 2012 8:55 am

Thank You Sir RVD.
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