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cancellation of orders by suppliers

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Re: cancellation of orders by suppliers

Post by neestrevencion on Tue Mar 29, 2011 7:11 pm

Ok, thanks!

there is this another scenario: the supplier is claiming that there is no available stock at its source, these are 4 line items of different toners. Only one of the 4 items is not available, but the supplier did not even deliver the other items, even to show good faith in its intention to deliver.

the delivery period lapsed. the supplier requested for extension of delivery schedule. the end user (pmo) was asked of comments / recommendation. the end user recommended for the cancellation of purchase order and forfeiture of bond in not delivering any of the items in the purchase order.

the recommendation was approved by the HOPE. at the time that the approval of cancellation of purchase order and forfeiture of the bond was to be relayed to the supplier, the supplier immediately delivered all items indicated in the purchase order.

the pmo rejected the delivery on the premise that there was already an approval by the HOPE on the recommendation of cancellation of purchase order and forfeiture of bond.

the supplier is now insisting delivery.

please advise.

thanks again!
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Re: cancellation of orders by suppliers

Post by sunriser431 on Tue Mar 29, 2011 7:40 pm

misty wrote:thank you for your inputs.

the fund i am referring to is the portion of contract which was cancelled. if this is so, the fund for this was previously appropriated. why the need for the sanggunian?

ty ulit.
Try this LINK . Good luck. Smile
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Re: cancellation of orders by suppliers

Post by misty on Mon Apr 04, 2011 9:18 pm

good pm.
may i know if there is a need for the BAC to come up with a resolution regarding the cancellation?

thank you.
( thank you sunriser431 for the link you provided in my other query. this may be late, but i am really grateful)
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Re: cancellation of orders by suppliers

Post by RDV @ GP3i on Wed Apr 06, 2011 7:09 am

neestrevencion wrote:Ok, thanks!

there is this another scenario: the supplier is claiming that there is no available stock at its source, these are 4 line items of different toners. Only one of the 4 items is not available, but the supplier did not even deliver the other items, even to show good faith in its intention to deliver.

the delivery period lapsed. the supplier requested for extension of delivery schedule. the end user (pmo) was asked of comments / recommendation. the end user recommended for the cancellation of purchase order and forfeiture of bond in not delivering any of the items in the purchase order.

the recommendation was approved by the HOPE. at the time that the approval of cancellation of purchase order and forfeiture of the bond was to be relayed to the supplier, the supplier immediately delivered all items indicated in the purchase order.

the pmo rejected the delivery on the premise that there was already an approval by the HOPE on the recommendation of cancellation of purchase order and forfeiture of bond.

the supplier is now insisting delivery.

please advise.

thanks again!

When the supplier requested for extension, after the delivery period has already lapsed, the procuring entity should have first denied the request for extension and informed the supplier that it is already in delay and that liquidated damages will be imposed. It is not correct to immediately cancel the purchase order and forfeit the performance bond.

The procuring entity should be guided that termination of contracts, although allowed under certain circumstances, should normally follow due process. While the supplier was already delayed in delivering, the first remedy for the delay, on the part of the procuring entity, is to first impose liquidated damages. Only if liquidated damages reaches 10% of the contract amount will automatic rescission/termination of the contract is the remedy provided for by the law.
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Re: cancellation of orders by suppliers

Post by RDV @ GP3i on Wed Apr 06, 2011 7:12 am

misty wrote:good pm.
may i know if there is a need for the BAC to come up with a resolution regarding the cancellation?

thank you.
( thank you sunriser431 for the link you provided in my other query. this may be late, but i am really grateful)

There is no need for BAC resolution since it is already beyond the responsibility of the BAC. The matter is already during contract implementation and not during the bidding/procurement process, where the BAC's responsibility is.
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Re: cancellation of orders by suppliers

Post by sunriser431 on Wed Apr 06, 2011 8:13 pm

misty wrote:good pm.
may i know if there is a need for the BAC to come up with a resolution regarding the cancellation?
thank you.
Section 12 of the Revised IRR is your guide.

misty wrote: ( thank you sunriser431 for the link you provided in my other query. this may be late, but i am really grateful)
as always you are welcome. bounce
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