NPM No. 006-2016
Requesting Entity: Ericvonne Construction
Issues Concern: Acceptable Forms of Performance Security
Whether it is allowed to post a performance security in the form of a Security Bond issued by an accredited insurance company by the Insurance Commission of the Philippines.
PEs now have the right to indicate in the Bidding Documents at least two (2) acceptable forms of performance security from which the bidder may opt to use. Thus, if the PE indicated in the bidding documents that only cash or cashier's/manager's check, bank draft/guarantee or irrevocable letter of credit are the acceptable forms of performance security that its winning bidder may choose from, then the latter may not post any other form of performance security, i.e. the Surety Bond, albeit it is one of the forms provided under the rules.