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Interpretation of Provision RE: Notice to Proceed

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Interpretation of Provision RE: Notice to Proceed

Post by attypmp on Wed Nov 20, 2013 11:02 am

Greetings!

The law provides:

37.4. Notice to Proceed
37.4.1. The procuring entity shall issue the Notice to Proceed together with a copy of
the approved contract to the successful bidder within three (3) calendar days
from the date of approval of the contract by the appropriate government
approving authority. However, for infrastructure projects with an ABC of Fifty
Million Pesos (P50,000,000) and below, the maximum period is two (2) calendar
days. The contract effectivity date shall be provided in the Notice to Proceed by
the procuring entity, which date shall not be later than seven (7) calendar days
from its issuance.


Does this mean that the contract effectivity can be made to retroact to coincide with the date of award? otherwise stated, can the contract effectivity be made BEFORE the date of issuance of the Notice to Proceed?

Illustration:

ABC Co. is the current security service provider. it also was the winning bidder for the new security service contract. the Notice of Award was dated 29 August 2013 but the Notice to Proceed has yet to be issued (talk about delays!!!). Can the procuring entity indicate in the NTP that the effectivity of the new contract is on 29 August 2013?

Thanks!

attypmp
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