Case Study: JB Juanzon Builders, Inc.

established its own construction company and decided to

bid on a major infrastructure project for a Government agency. In its bid price of Ph2,750,000,
JBJBI made a mistake by failing to include an amount of Ph350,000. This mistake resulted in its
bid being substantially lower than the second lowest bidder of Ph2,800,000. Within an hour,
subsequent to opening of bids, JB Juanzon requested to withdraw its bid, which had not yet
been accepted, and asked for its bid deposit of Ph150,000 to be returned. When the owner
rejected JB Juanzon request to withdraw its bid, JB Juanzon refused to proceed with the work.
The owner sued JB Juanzon Builders for the bid deposit amount and the difference between the
JB Juanzon’s bid price and the second lowest bidder’s price.

1. Is JBJBI allowed to withdraw its bid after submission and before award?

As per section 26.2 of the IRR of RA 9184, JBJBI will be allowed to withdraw the bid
provided it is done before the bid deadline. This should be done by sending a letter to the Bids
and Awards Committee (BAC) and be stamped before the deadline for the receipt of bids.

2. Is JBJBI allowed to withdraw its bid after award?

As per section 65.3 of the IRR of RA 9184, JBJBI will not be allowed to withdraw its bid
after it has been awarded as the Lowest Calculated Bid/ Highest Rated Bid, without just cause.
The bidder will receive an administrative penalty of suspension for one year for the first offense,
and two years for the second offense.

3. Is JBJBI entitled to a return of its bid deposit?

As per section 69.2 of the IRR of RA 9184, JBJBI will not be entitled a return of its bid
deposit of P150,000. Appropriate sanctions will also be implemented to the bidder.

4. Must the lowest bid be accepted?

As per section 34.1 of the IRR of RA 9184, the bidder with the lowest bid will not
necessarily be guaranteed the award of contract. The Lowest Calculated Bid shall first undergo
post-qualification in order to determine whether the bidder has complied with and is responsive
to all the requirements and conditions as specified in the bidding documents.

5. What if all bids come in over budget?

As per section 30.2 of the IRR off RA 9184, if the submitted bids exceeds the Approved
Budget Contract (ABC), the BAC shall rate the bid concerned as “failed.” This is because one of
the bid requirements is that the bids should never exceed the ABC. Only bids that are
determined to contain all the bid requirements shall be rated “passed” and shall be considered
for evaluation.

6. What if contractor qualifies (conditions) his/her bid?

A contractor cannot qualify his/her bid. It is up to the BAC whether or not the award of
contract goes to a bidder. The bidder must first pass all the requirements needed in order to be
awarded.
 Submitted

to

Dr. J. Berlin P. Juanzon

Graduate School

MAPUA UNIVERSITY

Submitted

by

VELICARIA, Gerard Jude S.