NPM No. 072-2016

Requesting Entity: Pili Water District

Issues Concern: Delay in Delivery of Goods



Whether it is allowed to rescind the contract and forfeit the performance security if the liquidated damages is less than ten percent (10%) of the contract price. If not, the other remedies that may be pursued under the circumstances


[A]side from rescinding the contract as a consequence of the liquidated damages reaching at least 10% of the contract price, the Procuring Entity (PE) may terminate its procurement contract under the grounds provided in the Guidelines for Termination of Contracts (Guidelines.)


[I]n case of delay in the delivery of goods, the PE may opt to terminate the contract and blacklist the supplier with forfeiture of performance security when warranted by the circumstances, provided the procedures provided in the Guidelines are properly observed.