Procedure for the procurement of consulting service - DOH

DOH CUSTOMIZED PROCUREMENT MANUAL VOLUME 4 2010
FORMS OF PERFORMANCE SECURITY
a. Cash, cashier’s/manager’s Check issued by a
Universal or Commercial Bank.
b. Bank draft/guarantee or irrevocable letter of
credit issued by a Universal or Commercial Bank:
Provided, however, that it shall be confirmed or
authenticated by a Universal or Commercial Bank,
if issued by a foreign bank.
c. Surety bond callable upon demand issued by a
surety or insurance company duly certified by the
Insurance Commission as authorized to issue
such security.
AMOUNT OF PERFROMANCE SECURITY
(EQUAL TO PERCENTAGE OF THE ABC)
Five percent (5%)
Thirty percent (30%)
d. Any combination of the foregoing. Proportionate to share of form with respect to total
amount of security
3.8.3 Who determines the form?
The procuring entity cannot limit the allowable forms of performance security
provided under the revised IRR of R.A. 9184 nor and modify the respective
amounts thereof. The winning bidder must choose which among the allowable
forms it shall submit.
3.8.4 Change in Performance Security in case of contract price changes
In case of a reduction in the contract value, or, in the case of procurement of
infrastructure projects, for partially completed works under the contract which are
usable and accepted by the GOP, and the use of which, in the judgment of the
implementing agency or the procuring entity, will not affect the structural integrity
of the entire project, the said agency or procuring entity shall allow a proportional
reduction in the original performance security, provided that any such reduction is
more than ten percent (10%) and that the aggregate of such reductions is not
more than fifty percent (50%) of the original Performance Security (Section 39.7
of the revised IRR).
3.8.5 Release of Performance Security
The performance security may be released by the procuring entity after the
issuance of the Certificate of Acceptance, subject to the following conditions:
a. Procuring entity has no claims filed against the contract awardee or the
surety company;
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