Group 11 Recap: Contract Management and Administration of Goods

Benefits of Effective Contract Management EXCEPT

• A. More Favorable contract outcomes

• B. Achieving value for money and financial control

• C. Increase in the level of Risk

• Early identification and resolution of poor performance, other problems or disputes

The Procuring Entity shall enter into contract with winning bidder within __ calendar days from the winning bidder's receipt of the NOA and provided that all the documentary requirements are complied with including posting of the appropriate performance security

• A. 5

• B. 7

• C. 10

• D. 21

Answer explanation

Under Section 66.5 of the IRR of RA 12009

General Rule: For the given scope of work in the awarded contract, are some bid prices allowed adjustments and escalations during contract implementation?

• A. Yes

• B. No

Answer explanation

Under Section 89 of the IRR of RA 12009

For the given scope of work in the contract as awarded, ALL BID PRICES shall be consideredvas FIXED PRICES, and therefore NOT SUBJECT TO PRICE ESCALATION during contract implementation.

Termination Due to Force Majeure is when the supplier fails to deliver or perform any or all of the Goods within the period (s) specified in the contract, or within any extension thereof granted by the Procuring Entity, pursuant to a request made by the supplier prior to the delay, and such failure amounts to at least ten percent (10%) of the contract price.

• True

• False

In computing, the amount of Performance Security to be issued, what is the required percentage of the total contract price for Goods and Consulting services should be?

• A. 10%

• B. 30%

• C. 5%

• D. 15%

Answer explanation

Based on the Sec. 68.4 of the IRR RA 12009

For effective discharge of Contract Administration duties, the PE must focus on the following important elements, except:

• A. Time

• B. Quality

• C. Cost

• D. Duties

These must be stored in a secure and safe place accessible only to authorized officials and personnel. These are also the basis of the decision-making and action-taking

• A. Backup copies

• B. Documentation

• C. Contract Documents

• D. All of the Above

The ______ may be released by the Procuring Entity (PE) after the issuance of Certificate of Final Appearance. Provided, that the PE has no claims filed against the Supplier/Contractor.

• A. Warranty

• B. Retention

• C. Advance Payment

• D. Performance Security

At least 5% Retention money shall be secured by the PE to cover the supplier's warranty obligations except in cases where the winning supplier submitted a special bank guarantee as warranty security.

• True

• False

Answer explanation

It should be at least 1%-5% Retention Money

Which of the following is not a ground for Contract Termination?

• A. Breach of Contract

• B. Convenience of the Procuring Entity

• C. Force Majeure

• D. None of the Above

Answer explanation

All are grounds for Contract Termination. (RA 12009 IRR, Sec. 71.4.1-5)