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termination of a contract

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termination of a contract

Post by girl_25 on Thu Aug 02, 2012 5:45 pm

Regarding termination of contract ( infrastructure) on the default of the contractor, are there any procedures such as series of conference, communication letters to be considered before it takes effect?

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Re: termination of a contract

Post by engrjhez® on Thu Aug 02, 2012 8:03 pm

girl_25 wrote:Regarding termination of contract ( infrastructure) on the default of the contractor, are there any procedures such as series of conference, communication letters to be considered before it takes effect?
If you used the PBDs in crafting your Bidding Documents, the General and Special Conditions of the Contract will solve your problem. Please refer to it and Annex "E" of the IRR for guidance. Smile
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Re: termination of a contract

Post by RDV @ GP3i on Sun Aug 05, 2012 11:31 am

girl_25 wrote:Regarding termination of contract ( infrastructure) on the default of the contractor, are there any procedures such as series of conference, communication letters to be considered before it takes effect?

There should be first demand letters to the contractor reminding the latter that there is already delay in its implementation of the project. It may take several demand letters on the part of the procuring entity, including any denial of any request(s) for contract time extension, if any.

If, because of the delay, liquidated damages already constitutes more than 10% of the contract amount, take over by the procuring entity of the contract will have to automatically rescind the contract and take-over the project, without any need for any due process, provided the contractor has continue to be in delay despite repeated demands on the part of the procuring entity.
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