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The BAC shall modify the terms, conditions and specifications in the first bidding documents,
when necessary, to change the scope of work or to adjust the procurements entity’s cost
estimates or specifications. However, the BAC shall be maintained. All bidders who have been
declared eligible in the first bidding shall be allowed to submit new bids. The BAC shall observe
the same process and set the new periods according to the same rules followed during the first
bidding.

Should there occur a second failure of bidding, the procuring entity concerned may enter into a
negotiated procurement.

VIII. Award of Contract

Award of contract shall be made to the bidder with the Lowest Calculated Responsive Bid, as its
submitted bid price or its calculated bid price, wherever is lower.

Performance Security

Minimum Amount in % of
Form of Security Total Contract Price
Cash, certified check cashier’s check, Five percent
manager’s check, back draft or irrevocable (5%)
letter of credit.
Bank guarantee Ten percent
(10 %)
Surely bond Thirty percent
(30 %)
Foreign government guarantee One hundred percent
(100%)

Warranty

Defects/Liability Period Warranty Period

__________________________ __________________________
1 Year 2 to 15 Years

Project Final
Completion Acceptance

For the procurement of infrastructure projects, the contractors shall assume full responsibility for
the contract work from the time project construction commenced up to final acceptance by the
government and shall be held responsible for any damage or destruction of the works except
those occasioned by force majeure. The contractor shall be required to put up a warranty security
in the form of cash, bank guarantee, letter of credit, Government Service Insurance System bond,
or callable surely bond.