NPM 119-2014

Requesting Entity: Sugar Regulatory Administration (SRA)

Issues Concern: Contract Termination and Rebidding



Whether the Procuring Entity (PE) may rebid a terminated project

Once a contract has been validly and lawfully terminated pursuant to the Guidelines on Termination of Contracts, but the procuring entity still intends to complete the project, it may conduct another procurement activity to select the contractor that will deliver and perform the project requirements. The selection shall be in accordance with RA 9184 and its associated IRR, and may be conducted using competitive bidding or any of the applicable alternative methods of procurement.

What will be the PE’s liability to the Contractor when there has been partial performance by the Contractor but it failed to submit the required documents such as its PCAB license, among others, for the liquidation of its claim.

If the contract is terminated because of a fundamental breach by the contractor, the procuring entity’s representative shall issue a Certificate for the value of the work done and materials ordered less advance payments received up to the date of the issuance of the Certificate, less the percentage to apply to the value of the work not completed, as indicated in the Special Conditions of the Contract, provided that additional liquidated damages shall not apply. If the total amount due to the procuring entity exceeds any payment due to the contractor, the difference shall be a debt payable to the procuring entity.

[C]ontractors are entitled to payment for works actually accomplished and they need to submit an SWA and request for progress payment. In a previous opinion, we stressed that there should be no concern on whether the contractor may be paid for services rendered since progress billings should have been submitted earlier so that the contractor may be paid for that portion of work or services completed.