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TERMINATION OF CONTRACT

Post by jene on Thu Oct 07, 2010 2:18 pm

Hi, guys,, i have been asking too many questions lately, and thank you for the fast response,,

i have another concern in bidding..this is the continuation of my last concern with the payment of the procuring entity.

the bid was awarded to us, and we already delivered and supplied the unit to the procuring entity but the installation was put on hold because there is no site for the unit to be installed. The contract was delayed over a year now..so we decided to terminate the contract.. can we ask for the payment for the delivered unit and other costs that occur such as storage fee?

and what legal action can we make?thanks a lot!
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Re: TERMINATION OF CONTRACT

Post by RDV @ GP3i on Thu Oct 07, 2010 2:25 pm

jene wrote:Hi, guys,, i have been asking too many questions lately, and thank you for the fast response,,

i have another concern in bidding..this is the continuation of my last concern with the payment of the procuring entity.

the bid was awarded to us, and we already delivered and supplied the unit to the procuring entity but the installation was put on hold because there is no site for the unit to be installed. The contract was delayed over a year now..so we decided to terminate the contract.. can we ask for the payment for the delivered unit and other costs that occur such as storage fee?

and what legal action can we make?thanks a lot!

Yes, you could ask for payment of delivered units and other costs, such as storage fee, under the principle of "quantum meruit" earlier mentioned by engrjhez, I think, in your other post.
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Re: TERMINATION OF CONTRACT

Post by charlie brown on Thu Oct 07, 2010 3:53 pm

jene wrote:Hi, guys,, i have been asking too many questions lately, and thank you for the fast response,,

i have another concern in bidding..this is the continuation of my last concern with the payment of the procuring entity.

the bid was awarded to us, and we already delivered and supplied the unit to the procuring entity but the installation was put on hold because there is no site for the unit to be installed. The contract was delayed over a year now..so we decided to terminate the contract.. can we ask for the payment for the delivered unit and other costs that occur such as storage fee?

and what legal action can we make?thanks a lot!

In contracts involving delivery and installation by the supplier, the timelines and responsibilities should be clearly stated in the bidding documents. where a prior activity is to be undertaken (and is not within the control of the supplier) before installation could commence it is best to incorporate scenarios and the agreements to be made for each scenario. it would also help if a separate price and delivery period could be identified for the installation and maybe even training phase so that it would be easier to compute claims and also liquidated damages in case. I noted that it took the supplier one year to act. I suppose the deadline for the delivery and installation was less than that period.
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Re: TERMINATION OF CONTRACT

Post by jene on Thu Oct 07, 2010 4:22 pm

hi, charlie brown,

i think you misunderstood the situation..we are the supplier, we delivered the units to the procuring entity and we are waiting for them to give us the site for the unit to be installed. its been a year and still they cant provide us the site for the installation. it is not our fault for the delay of the contract/project.

guys,,can the "TERMINATION FOR CONVENIENCE"apply to our situation?
all stated in the bidding docs are not in favor to the supplier..
help pls..
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Re: TERMINATION OF CONTRACT

Post by jene on Thu Oct 07, 2010 4:29 pm

thanks rdv,il look for my older posts, Smile
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Re: TERMINATION OF CONTRACT

Post by charlie brown on Thu Oct 07, 2010 4:57 pm

jene wrote:hi, charlie brown,

i think you misunderstood the situation..we are the supplier, we delivered the units to the procuring entity and we are waiting for them to give us the site for the unit to be installed. its been a year and still they cant provide us the site for the installation. it is not our fault for the delay of the contract/project.

guys,,can the "TERMINATION FOR CONVENIENCE"apply to our situation?
all stated in the bidding docs are not in favor to the supplier..
help pls..

i got it right that you were the supplier jene. just the same, what i was trying to explain was that if delivery is the responsibility of the supplier and some other entervening activity (it need not be the provision of a lot, in an instance that i know of, it was the provision of carpentry works that the PE has to undertake prior to the installation), is the reponsibility of another, the implication of this other guy not complying with his responsibility vis a viz your installation should be discussed. E.g. if there is a delay in the carpentry and it affects your delivery how are you going to treat the delay, etc.

the termination for convenience is only for the PE and you are the supplier. your rightful recourse would be Termination by contractor/consultant under III. E of gppb res 018-2004 if it is a civil works project. but then i think it is a contract for the delivery of goods hence it would not be applicable.

And this wouold highlight what i just mentioned in my first reply about how these responsibilities and their delineations and implications should be considered in the bid docs for goods.

In your case you could have demanded payment when the delivery was made at least for the portion of the delivery. there is no need for you to terminate the contract. Just demand for the payment since delivery was made.
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Re: TERMINATION OF CONTRACT

Post by RDV @ GP3i on Thu Oct 07, 2010 5:49 pm

jene wrote:thanks rdv,il look for my older posts, Smile

Maybe this COA Resolution on the recovery by government contractors on the principle of Quantum Meruit, would help.
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