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Post-Qualification

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Post-Qualification

Post by jcolas on Tue Oct 27, 2009 10:07 am

What does a Compensation Event and how does it work?
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Re: Post-Qualification

Post by jcolas on Tue Oct 27, 2009 10:34 am

Ladies & Gentlemen,
May I change my question from What does a Compensation Event to What is a Compensation Event?
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Re: Post-Qualification

Post by RDV @ GP3i on Tue Oct 27, 2009 10:41 am

jcolas wrote:Ladies & Gentlemen,
May I change my question from What does a Compensation Event to What is a Compensation Event?

Jcolas, first time I encountered that phrase (compensation event) in relation to the GPRA and its IRR. I tried searching in the revised IRR as well, but my search turned out negative. You posted it under Post-Qualification, can you give us the circumstance by which you encountered the use of that phase in post-qualification? Maybe it will help us in answering your question. Thanks.

RDV
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Re: Post-Qualification

Post by jcolas on Tue Oct 27, 2009 1:17 pm

Sir RDV;
When I received your post, I immediately downloaded the PBD-Goods provided by the gppb and true enough, wala din. I went back to the Bidding Document I am currently working on provided by our department for our use in the bidding for armchairs and infrastructure projects for pre-schools. Under Section 33.2 of the General Conditions of Contract it states and I quote, "If the Procuring Entity’s Representative instructs the Contractor to carry out a test not specified in the Specification to check whether any work has a defect and the test shows that it does, the Contractor shall pay for the test and any samples. If there is no defect, the test shall be a Compensation Event." I am now aware that this is from our department; my next question is, is this allowed?
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Re: Post-Qualification

Post by sunriser431 on Tue Oct 27, 2009 2:48 pm

jcolas wrote:Sir RDV;
When I received your post, I immediately downloaded the PBD-Goods provided by the gppb and true enough, wala din. I went back to the Bidding Document I am currently working on provided by our department for our use in the bidding for armchairs and infrastructure projects for pre-schools. Under Section 33.2 of the General Conditions of Contract it states and I quote, "If the Procuring Entity’s Representative instructs the Contractor to carry out a test not specified in the Specification to check whether any work has a defect and the test shows that it does, the Contractor shall pay for the test and any samples. If there is no defect, the test shall be a Compensation Event." I am now aware that this is from our department; my next question is, is this allowed?
My Observation
Simply said that if any random samples subject to test has failed, any expenses incurred shall be for in the account of the Supplier/Bidder or if the test is successful it shall be reimbursable(Compensable) to the supplier/Bidder? s this what you been trying to impart?


Last edited by sunriser431 on Thu Oct 29, 2009 5:50 pm; edited 2 times in total
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Re: Post-Qualification

Post by jcolas on Tue Oct 27, 2009 3:02 pm

If the test reveals a defect, the contractor pays, if the test does not reveal a defect, then the suppliers is reimbursed but my questions now are:
1. Can a PE add conditions for bidders to follow?
2. Can the PE conduct a test not specified in the Specification? (if the answer to my first question is in the positive)
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Re: Post-Qualification

Post by sunriser431 on Tue Oct 27, 2009 3:32 pm

jcolas wrote:If the test reveals a defect, the contractor pays, if the test does not reveal a defect, then the suppliers is reimbursed but my questions now are:
1. Can a PE add conditions for bidders to follow?
2. Can the PE conduct a test not specified in the Specification? (if the answer to my first question is in the positive)
I think Section 62 of the Revised IRR of RA9184 clearly states the warranty required from the suppliers/bidders.

Additional information probably this might help
Sec. 481 of GAAM
a. xxxx
b. xxxx
All charges and fees for the test and analysis on delivery samples shall be charged to or paid by the procuring agency, said payment to be made available from the funds for consumption of supplies and materials, or from other funds available at the agency concerned. bounce
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Re: Post-Qualification

Post by RDV @ GP3i on Thu Oct 29, 2009 6:13 pm

jcolas wrote:Sir RDV;
When I received your post, I immediately downloaded the PBD-Goods provided by the gppb and true enough, wala din. I went back to the Bidding Document I am currently working on provided by our department for our use in the bidding for armchairs and infrastructure projects for pre-schools. Under Section 33.2 of the General Conditions of Contract it states and I quote, "If the Procuring Entity’s Representative instructs the Contractor to carry out a test not specified in the Specification to check whether any work has a defect and the test shows that it does, the Contractor shall pay for the test and any samples. If there is no defect, the test shall be a Compensation Event." I am now aware that this is from our department; my next question is, is this allowed?

Jcolas:

Sorry, I am only able to access the online forum today.

If you say that you quote that from Sec. 33.2 of the GCC, both the old and the new PBDs do not have any Section 33. It would appear, therefore, that it is the procuring entity's additional provision in the GCC. On you question on whether it is allowed, I would say that it is not allowed to be placed in the GCC since the GCC should be fixed and therefore should not be altered. The rule is that any changes and/or additional instructions should be in the SCC. Are you allowed to put that provision in the SCC, the answer is YES, but you should make it understandable to bidders. If you yourself from the procuring entity does not understand it, how will you be able to explain it to bidders?
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Re: Post-Qualification

Post by jcolas on Thu Oct 29, 2009 9:17 pm

Sir RDV, good evening. When I did not hear from you I tried to contact our Physical Facilities and Enginnerring Division at the Central Office. I presented them the facts and told them why was the GCC touched and ask them to explain what is a Compensation Event. Our Physical Facilities referred me to our Procurement Division and the same thing, they again referred me back to our Engineering Division. Will try to call them up again tomorrow. I;ve got to have the answer tomorrow as how can we explain this to our bidders wnen I myself is in a daze. I will keep you posted on this issue but thatk you for the initial feed back.
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Re: Post-Qualification

Post by RDV @ GP3i on Fri Oct 30, 2009 3:35 pm

jcolas wrote:Sir RDV, good evening. When I did not hear from you I tried to contact our Physical Facilities and Enginnerring Division at the Central Office. I presented them the facts and told them why was the GCC touched and ask them to explain what is a Compensation Event. Our Physical Facilities referred me to our Procurement Division and the same thing, they again referred me back to our Engineering Division. Will try to call them up again tomorrow. I;ve got to have the answer tomorrow as how can we explain this to our bidders wnen I myself is in a daze. I will keep you posted on this issue but thatk you for the initial feed back.

Welcome, jcolas, and keep me posted. It is good that you exerted effort to find out who prepared the bidding docs and get the answers from them on the meaning of the words used. It would really be difficult, if not an embarrassment, on your part if you will not be able to explain to bidders (during pre-bid conference or when they ask for clarification), any provisions which the procuring entity "inserted" in the PBDs. It would also pose a problem during contract implementation.

Procuring entities should be guided that the PBDs (now we have the 3rd edition) issued by the GPPB are standard bidding documents that we are required to use (Sec. 17.1, revised IRR). In the instructions, the Instruction to Bidders (ITB) and the General Conditions of Contracts (GCC) are considered fixed and, therefore, should not be altered by the procuring entities. They should be used as is. Any modifications or additional information specific to the contract being bidded should be indicated in the Bid Data Sheet (BDS) and Special Conditions of Contract (SCC), respectively.
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