A. General 1. Scope of Bid 2. Source of Funds 3. Corrupt, Fraudulent ...

Instructions to Bidders33. Performance Security33.1. To guarantee the faithful performance by the winning Bidder of its obligationsunder the contract, it shall post a performance security within a maximumperiod of ten (10) calendar days from the receipt of the Notice of Award fromthe Procuring Entity and in no case later than the signing of the contract.33.2. The performance security shall be denominated in Philippine Pesos and postedin favor of the Procuring Entity in an amount equal to the percentage of thetotal contract price in accordance with the following schedule:Form of Performance Security(a) Cash or cashier’s/manager’scheck issued by a Universal orCommercial Bank.(b) Bank draft/guarantee orirrevocable letter of creditissued by a Universal orCommercial Bank: Provided,however, that it shall beconfirmed or authenticated by aUniversal or Commercial Bank,if issued by a foreign bank.(c) Surety bond callable upondemand issued by a surety orinsurance company dulycertified by the InsuranceCommission as authorized toissue such security; and/or(d) Any combination of theforegoing.Amount of Performance Security(Equal to Percentage of the TotalContract Price)Five percent (5%)Thirty percent (30%)Proportionate to share of form withrespect to total amount of security33.3. Failure of the successful Bidder to comply with the above-mentionedrequirement shall constitute sufficient ground for the annulment of the awardand forfeiture of the bid security, in which event the Procuring Entity shallinitiate and complete the post qualification of the second Lowest CalculatedBid. The procedure shall be repeated until the LCRB is identified and selectedfor contract award. However if no Bidder passed post-qualification, the BACshall declare the bidding a failure and conduct a re-bidding with readvertisement.34. Notice to Proceed34.1. Within three (3) calendar days from the date of approval of the contract by theappropriate government approving authority, the Procuring Entity shall issueits Notice to Proceed to the Bidder.34.2. The date of the Bidder’s receipt of the Notice to Proceed will be regarded asthe effective date of the contract, unless otherwise specified in the BDS.Page 20 of 40