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INCREASE OF PRICE QUOTATION AFTER PO SERVED.

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INCREASE OF PRICE QUOTATION AFTER PO SERVED.

Post by mcb-0107 on Mon Nov 10, 2014 4:21 pm

A Purchase Order was already served to a winning bidder under shopping mode of procurement. However, the supplier sent a letter informing that they have committed an error in their price quotation. The correct price of the item is higher than the original price they bidded however remains the lowest bidder despite of the changes. Is this acceptable under the procurement law? should we still award it to them considering that they are still the lowest bidder? are we allowed to demand for a liquidated damages?

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Re: INCREASE OF PRICE QUOTATION AFTER PO SERVED.

Post by Engr_Roselyn on Mon Dec 01, 2014 7:17 pm

did they signed the PO? if they did, void their performance sec

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Re: INCREASE OF PRICE QUOTATION AFTER PO SERVED.

Post by engrjhez® on Tue Dec 02, 2014 8:38 am

mcb-0107 wrote:A Purchase Order was already served to a winning bidder under shopping mode of procurement. However, the supplier sent a letter informing that they have committed an error in their price quotation. The correct  price of the item is higher than the original price they bidded however remains the lowest bidder despite of the changes. Is this acceptable under the procurement law?

No. Contract prices are fixed. The submitted bid price is binding upon the bidder.

mcb-0107 wrote:should we still award it to them considering that they are still the lowest bidder?

Under the adjusted price? No. You are not allowed to change the contract price even if the resulting bid is still the lowest.

mcb-0107 wrote:are we allowed to demand for a liquidated damages?

No. Liquidated damages are applicable only if the supplier incurred delay.
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Re: INCREASE OF PRICE QUOTATION AFTER PO SERVED.

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