required bid security

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required bid security

Post by black on Sat Sep 29, 2012 2:14 pm

pls..help

1. what is the difference between credit line certificate and irrevocable letter of credit?

2. May i know if CLC is allowed as a ifbid security?

3. if CLC is ok as bid security, is it ok if it is 8% higher than the required amount?

4. if CLC is ok what would be the details that should be reflected in the certificate, does the name of the procuring entity
necessary and the purpose of CLC as bid security reflected on it?
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Re: required bid security

Post by engrjhez® on Mon Oct 01, 2012 6:19 pm

black wrote:pls..help

1. what is the difference between credit line certificate and irrevocable letter of credit?

2. May i know if CLC is allowed as a ifbid security?

3. if CLC is ok as bid security, is it ok if it is 8% higher than the required amount?

4. if CLC is ok what would be the details that should be reflected in the certificate, does the name of the procuring entity
necessary and the purpose of CLC as bid security reflected on it?

1. CLC is a financial requirement. IRC is form of security.

2. CLC is not those enumerated to acceptable form of bid security.

3. CLC is not acceptable as bid security. Higher bid securities than that prescribed are acceptable.

4. Again, CLC is not an acceptable form of bid security.
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Re: required bid security

Post by RDV @ GP3i on Tue Oct 02, 2012 5:25 pm

engrjhez® wrote:
black wrote:pls..help

1. what is the difference between credit line certificate and irrevocable letter of credit?

2. May i know if CLC is allowed as a ifbid security?

3. if CLC is ok as bid security, is it ok if it is 8% higher than the required amount?

4. if CLC is ok what would be the details that should be reflected in the certificate, does the name of the procuring entity
necessary and the purpose of CLC as bid security reflected on it?

1. CLC is a financial requirement. IRC is form of security.

2. CLC is not those enumerated to acceptable form of bid security.

3. CLC is not acceptable as bid security. Higher bid securities than that prescribed are acceptable.

4. Again, CLC is not an acceptable form of bid security.

Engrjhez, on the underlined, I hope you are not saying that it is acceptable if procuring entities set bid securities at higher rates than that prescribed. I will take it to mean that the BAC should accept and not disqualify bidders who submit bid securities the amount of which are higher than that being required in the bid docs. (Although, I could not comprehend why bidders would submit higher amounts than what is being required, as the bid security should be equal to a percentage of the ABC depending on the form of bid security being submitted.)
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Re: required bid security

Post by engrjhez® on Tue Oct 02, 2012 6:06 pm

RDV @ GP3i wrote:
engrjhez® wrote:
black wrote:pls..help

1. what is the difference between credit line certificate and irrevocable letter of credit?

2. May i know if CLC is allowed as a ifbid security?

3. if CLC is ok as bid security, is it ok if it is 8% higher than the required amount?

4. if CLC is ok what would be the details that should be reflected in the certificate, does the name of the procuring entity
necessary and the purpose of CLC as bid security reflected on it?

1. CLC is a financial requirement. IRC is form of security.

2. CLC is not those enumerated to acceptable form of bid security.

3. CLC is not acceptable as bid security. Higher bid securities than that prescribed are acceptable.

4. Again, CLC is not an acceptable form of bid security.

Engrjhez, on the underlined, I hope you are not saying that it is acceptable if procuring entities set bid securities at higher rates than that prescribed. I will take it to mean that the BAC should accept and not disqualify bidders who submit bid securities the amount of which are higher than that being required in the bid docs. (Although, I could not comprehend why bidders would submit higher amounts than what is being required, as the bid security should be equal to a percentage of the ABC depending on the form of bid security being submitted.)
Thank you for pointing that out RDV, and sorry if it does caused a different meaning. We share the same take.

What I mean with the underlined is that for example: The ABC is P1,000,000.00. The required bid security if in the form of surety is (5% of ABC or) P50,000.00. Procuring entities are mandated to have the required bid security fixed accordingly, unlike in the regime of IRR-A where the prescription is in the minimum.

If the bidder posted a surety in the amount of P60,000.00, they can not (strictly) be disqualified just because they exceeded the prescribed bid security. The rule in the IRR is intended for the PE, not on the bidder. I also agree with your observation that sometimes bidders post bid securities higher than what is already in the bidding documents. In fact, they need not to compute because the exact value is already in the BDS.
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