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RETENTION WARRANTY WITHDRAWAL FOR PROCUREMENT OF MEDICINES

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RETENTION WARRANTY WITHDRAWAL FOR PROCUREMENT OF MEDICINES

Post by karyle_20 on Thu Aug 26, 2010 9:59 pm

Kind Sirs, is there a specific legal provision/ruling governing the requirements for the withdrawal of the 10% retention withheld for the procurement of medicines (for stocks)? If there is, kindly share the link or state the provision.

Furthermore, is the BFAD Test Result document a required attachment for the withdrawal of the 10% retention warranty?

Answers would be appreciated the soonest time possible.

Thank you.
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Re: RETENTION WARRANTY WITHDRAWAL FOR PROCUREMENT OF MEDICINES

Post by RDV @ GP3i on Thu Aug 26, 2010 10:31 pm

karyle_20 wrote:Kind Sirs, is there a specific legal provision/ruling governing the requirements for the withdrawal of the 10% retention withheld for the procurement of medicines (for stocks)? If there is, kindly share the link or state the provision.

Furthermore, is the BFAD Test Result document a required attachment for the withdrawal of the 10% retention warranty?

Answers would be appreciated the soonest time possible.

Thank you.
Why is the supplier withdrawing the retention money? The retention money can only be released upon lapse of the Warranty period (3 months unless consumed earlier) or the issuance of the Certificate of Acceptance. The BFAD Test Result has nothing to do with the withdrawal of the retention money, unless, maybe, it was made as a condition in the contract.
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Re: RETENTION WARRANTY WITHDRAWAL FOR PROCUREMENT OF MEDICINES

Post by karyle_20 on Fri Aug 27, 2010 12:39 am

The BFAD Test Result may produce a failed testing for one or more of the drugs under consideration (it may take a considerable length of time before the results come out which may be after the stocks are delivered)... Will such a situation warrant the forfeiture of the retention?

Thank you for the immediate responses.
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Re: RETENTION WARRANTY WITHDRAWAL FOR PROCUREMENT OF MEDICINES

Post by sunriser431 on Fri Aug 27, 2010 10:14 pm

karyle_20 wrote:The BFAD Test Result may produce a failed testing for one or more of the drugs under consideration (it may take a considerable length of time before the results come out which may be after the stocks are delivered)... Will such a situation warrant the forfeiture of the retention?

Thank you for the immediate responses.
excerpt from the PBDs for goods for your guide. bounce
16. Inspection and Tests
16.1 xxxx
16.4. The Procuring Entity may reject any Goods or any part thereof that fail to pass any test and/or inspection or do not conform to the specifications. The Supplier shall either rectify or replace such rejected Goods or parts thereof or make alterations necessary to meet the specifications at no cost to the Procuring Entity, and shall repeat the test and/or inspection, at no cost to the Procuring Entity, upon giving a notice pursuant to GCC Clause 5
Furthermore section 17 provides
17. Warranty
17.1 xxxx
17.4. The Procuring Entity shall promptly notify the Supplier in writing of any claims arising under this warranty. Upon receipt of such notice, the Supplier shall, within the period specified in the SCC and with all reasonable speed, repair or replace the defective Goods or parts thereof, without cost to the Procuring Entity.
17.5. If the Supplier, having been notified, fails to remedy the defect(s) within the period specified in GCC Clause 17.4, the Procuring Entity may proceed to take such remedial action as may be necessary, at the Supplier’s risk and expense and without prejudice to any other rights which the Procuring Entity may have against the Supplier under the Contract and under the applicable law.

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Re: RETENTION WARRANTY WITHDRAWAL FOR PROCUREMENT OF MEDICINES

Post by RDV @ GP3i on Sat Aug 28, 2010 9:29 am

karyle_20 wrote:The BFAD Test Result may produce a failed testing for one or more of the drugs under consideration (it may take a considerable length of time before the results come out which may be after the stocks are delivered)... Will such a situation warrant the forfeiture of the retention?

Thank you for the immediate responses.

If the BFAD Test Result takes "a considerable length of time" but does not extend beyond the 3 months warranty period of Goods, then the requirement that such test result be submitted before the retention money is released, would not pose a problem. The problem, on the part of the supplier, is when it takes much more considerable time. The supplier can demand the release of his retention money since the 3-month warranty period has already lapsed. Even if the procuring entity has already released the retention money, the supplier could still be held accountable for the delivery of medicines/drugs which do not conform to BFAD rules.
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Re: RETENTION WARRANTY WITHDRAWAL FOR PROCUREMENT OF MEDICINES

Post by karyle_20 on Sat Aug 28, 2010 6:18 pm

Kind Sirs,

The replies have clarified much. Thank you for your immediate and patient responses. Very Happy

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Re: RETENTION WARRANTY WITHDRAWAL FOR PROCUREMENT OF MEDICINES

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