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contract duration

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contract duration

Post by nikkimad on Wed Apr 13, 2011 2:38 pm

Our LGU entered into a contract with a corporation for the conduct annual medical exam and pre-employment medical exam for employees of companies located in the lgu. The diagnostic clinic has a laboratory stationed in the lgu-run hospital to the exclusion of other clinics. The contract has a duration of five years.

Is the length of the contract allowed or is there a limitation as to the duration of contracts entered into by LGUs? Thanks
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Re: contract duration

Post by engrjhez® on Wed Apr 13, 2011 8:28 pm

nikkimad wrote:Our LGU entered into a contract with a corporation for the conduct annual medical exam and pre-employment medical exam for employees of companies located in the lgu. The diagnostic clinic has a laboratory stationed in the lgu-run hospital to the exclusion of other clinics. The contract has a duration of five years.

Is the length of the contract allowed or is there a limitation as to the duration of contracts entered into by LGUs? Thanks

LGU is just like any corporation. It can enter into contract for as long as it is approved by the Sanggunian. However, in contracting into 5-year term, the payment scheme (and funding) shall be done annually. General rule is that terms and conditions not disadvantageous to the government.

Hence, my answer is yes and I knew no limitation as to the number of years entered into by the LGU. Smile

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Re: contract duration

Post by Jovinal on Mon Aug 19, 2013 11:23 pm

For me it cannot be done if the source of ABC is Maintenance and Other Operating Expenses because it is good only for one budget year.
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Re: contract duration

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