NPM 008-2008

Requesting Entity: City of Muntinlupa

Issues Concern: Advance Payment



Whether or not down payment amounting to fifty percent (50%) of the contract price may be released on the purchase of fire fighting equipment based on the representation of the supplier that said initial payment is a common practice in said industry.

A careful reading of Item 4.3 reveals that the phrase "services where requirement of down payment is a standard industry practice" merely describes the three (3) enumerated services, namely: (i) hotel and restaurant services, (ii) use of conference/seminar and exhibit areas, and (iii) lease of office space, where advance payment not to exceed fifty percent (50%) is allowed. It is not a catch-all phrase which permits a procuring entity to add another instance.