GENERAL CONDITIONS

1. All bids shall be accompanied by a Bid Security, payable to the procuring entity concerned as a guarantee that the successful bidder shall, within ten (10) calendar days, or less as indicated in the Instructions to Bidders, from receipt of the Notice of Award, enter into contract with procuring entity and furnish the performance security provided for in Section 39 of the Act and this IRR-A Failure to enclose the required Bid Security in the form and amount prescribed herein shall automatically disqualify the bid concerned.

2. The Bid Security shall be in an amount at least equal to, and not lower than, a percentage of the approval budget for the contract to bid, as advertised by the concerned procuring entity, in any of the following forms;

   1. Cash, certified check, cashier's check/manager's check, bank draft/guarantee confirmed by a reputable local bank or in the case of a foreign bidder, bonded by a foreign bank;

   2. Irrevocable letter of credit issued by a reputable commercial bank or in the case of an irrevocable letter of credit issued by a foreign bank, the same shall be confirmed or authentically by a reputable local bank;

   3. Surety bond callable upon demand issued by a reputable surety or insurance company;

   4. Any combination thereof, or

   5. Foreign government guarantee as provided in an executive, bilateral or multilateral agreement, as may be required by the head of the procuring entity concerned.

Form of Security

Minimum in Amount in % of Approved Budget for the Contract to be Bid

1. Cash, certified check, cashier's check, manager's check, bank draft or irrevocable letter of credit

One percent %

2. Bank Guarantee

3. Surety Bond

4. Foreign government guarantee

3. The required minimum bid security, based on the above schedule shall be stated in the Philippine Pesos in the bidding document;

4. No Bid Securities shall be returned to bidders after the opening of bids and before contract signing, except to those that failed to comply with any of the requirements to be submitted in the first bid envelope of the bid, as provided in the IRR-A. Without prejudice to the provisions the Act and this IRR-A on the forfeiture of Bid Securities. Bid Securities shall be returned only after the bidder with Lowest Calculated Responsive. Bid or Highest Rated Responsive Bid, as the case may be, has signed the contract and furnished the Performance Security, but in no case later than the expiration of the Bid Security validity period indicated in the instruction to bidders.

5. Bids and Bids Securities shall be valid for a reasonable period as determined by the head of the procuring entity concerned, and shall be indicated in the bidding documents, but in no case shall exceed one hundred twenty (120) calendar days from the date of the opening of bids.

6. A bidder may modify its bid, provided that this is done before the deadline for the submission and receipt of bids. Where a bidder modifies its bid, it shall not be allowed to retrieve its original bid, but shall only be allowed to send another bid equally sealed, property identified, linked to its original bid and marked as a "modification", thereof, and stamped "received" by the BAC. Bid modification received after the applicable deadline shall not be considered and shall be returned to the bidders unopened.

7. A bidder may, through a letter, withdraw its bid before the deadline for the receipt of bids. Withdrawal of bids after the applicable deadline shall be subject to appropriate sanctions as prescribed in this IRR-A. A bidder may also express its intention not to participate in the bidding through a letter which should reach and be stamped received by the BAC before the deadline for the receipt of bids. A bidder that withdraws its bid shall not be permitted to submit another id, directly or indirectly, for the same contract.