November 24, 2019

HON. JOHN GEESNELL “BABA” L. YAP II

City Mayor of Tagbilaran City
City Government of Tagbilaran City
Cogon, Tagbilaran City, Bohol

SIR:

Good Day. This is in reference to our request for the reduction of

liquidated damages in connection with the procurement of goods, ITB No. 1901-
25(P5 INDOOR FULL COLOR LED DISPLAY). We are asking for your
utmost reconsideration that you grant us our request.

We have repeatedly demanded from your office to reduced the amount of

liquidated damages of Php177,480.00 for the procurement of the said goods
based on our computations. However, you have reiterated that this particular
procurement was by lot and the whole amount of the lot amounting to
Php1,530,00.00 should be the basis for the computation of the liquidated
damages.

Following this rule, we want you to consider some factors that are deemed
vital for your consideration. First, we admit that we have incurred delay in our
delivery last May 24, 2019, but such delay was due to Mid-Term Elections last
May 13, 2019, our supposed to be delivery date. Despite such fact, we have
delivered items amounting to Php1,383,500.00 on May 24, 2019 while the
remaining items were delivered on June 6, 2019 amounting to Php33,100.00.
Second, the remaining amount of Php113,400.00, which was the Hanging Truss
Scaffolding Assembly were already delivered last May 24, 2019, but it would not
fit and needed to be replaced according to your request, such was replaced and
delivered only on September 6, 2019. Third, that the LED SCREEN DISPLAYS
were already functioning and usable despite the lack of scaffolding assembly.
Lastly, we are asking you to reconsider our computation for the liquidated
damages amounting only Php33,500.40. The basis of your computation for the
liquidated damages have not been clearly mandated according to the provisions
of law. Attached herewith is the Schedule of Computation for Liquidation
Damages.

That such liquidated damage amounting to Php117,480.00 proved to be

material to our cost-profit margin for this particular contract. We are hoping that
you consider these circumstances to reduce the amount of liquidated damages
based on our computation of Php33,500.40.

We are hoping for your positive response.

Thank you very much.