bid documents for the procurement of rice mill parts and ...

inclusive of duly granted time extensions, if any, the
supplier shall be liable for damages for the delay and
shall pay the NFA liquidated damages, not by way of
penalty, an amount equal to 1/10 of 1% of the cost of
the delayed materials scheduled for delivery for every
day of delay until such materials are finally delivered
and accepted by the NFA.
2. Such amount shall be deducted from any money due or
which may become due the supplier, or collected from
any securities or warranties posted by the supplier,
whichever is convenient to NFA. In no case shall the
sum of liquidated damages exceed ten percent (10%)
of the total contract price, in which event the NFA shall
automatically rescind the contract and/or impose
appropriate sanctions over and above the liquidated
damages to be paid.
3. No liquidated damages shall be imposed to the supplier
if the cause of delay is imputable to NFA, fortuitous
event or force majeure.
XI. SPECIAL PROVISION
A. WARRANTY
In order to assure that latent and patent defects shall be
corrected, a warranty security shall be required from the
contractor for a minimum period of one (1) year or 480
operating hours whichever comes first, after acceptance by
the procuring entity of the delivered items.
The obligation of the warranty shall be covered by either
retention money or a special bank guarantee in an amount
equivalent to at least ten percent (10%) of the total
contract price. The said amounts shall only be released
after the lapse of the warranty period. Provided, however,
that the supplies delivered are free from patent and latent
defects and all the conditions imposed under the contract
have been fully met.
XII. ARBITRATION
Any and all disputes arising from the implementation of a
contract covered by the Act and its IRR-A shall be submitted to
arbitration in the Philippines in accordance with Republic Act
9285 (RA 9285), otherwise known as the “Alternative Dispute
Resolution Act of 2004”. The process of arbitration shall be
incorporated as a provision in the contract that will be
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