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Liquidated damages

Re: Liquidated damages

by Jessie Salvador -
Number of replies: 0
  1. Yes. Sec.68 of the 2016 Revised IRR of RA 9184 as amended now reads: "xxx Once the cumulative amount of liquidated
    damages reaches ten percent (10%) of the amount of the contract, the Procuring Entity may rescind or terminate the contract, without prejudice to other courses of action and remedies available under the circumstances." Hence, rescission is no longer ipso facto or automatic upon reaching 10%. 
  2. The manner is similar to collection cases. Demand will be issued, and if the supplier/contractor fails or refuses to pay, the remedy of Small Claims or ordinary civil action may be resorted to.
  3. No, since there is no more automatic cancellation of contracts.