Requesting Entity: Municipality of Hilongos
Issues Concern: Performance Security and Blacklisting
Whether the payment of Performance Security through a personal check is one of the grounds to blacklist a winning bidder based on Section 4.1.5 of the Uniform Guidelines for Blacklisting of Manufacturers, Suppliers, Distributors, Contractors and Consultants (Guidelines).
Section 4.1.5 of the Guidelines provides that the refusal or failure of a contractor to post the required Performance Security within the prescribed period is one of the grounds for blacklisting. The aforesaid provision thus considers two situations - (1) Refusal to post the required Performance Security, or (2) Failure to post the required Performance Security. Failure to post denotes the inability to post the Performance Security in the required form and in accordance with the corresponding percentages indicated in Section 39.2 of the IRR of RA 9184. Hence, the submission by RJIR of a Performance Security in the form of a personal check after the signing of the contract could be considered as a failure to post the required Performance Security.