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Net Financial Contracting Capacity
Net Financial Contracting Capacity
(NFCC)
Note:
IT MUST AT LEAST BE EQUAL TO THE APPROVED BUDGET FOR THE CONTRACT TO BE BID
CALCULATED AS FOLLOWS:
NFCC = {[CURRENT ASSETS – CURRENT LIABILITIES ] X [K] } – [ VALUE OF ALL STANDING WORKS OR
PROJECTS
UNDER ON-GOING CONTRACTS, INCLUDING AWARDED BUT NOT YET STARTED (SAY C)
Where:
K = 10 (for a contract duration of one (1) year or less
= 15 (for a contract duration of more than one (1) year up to two (2) years
= 20 (for a contract duration of more than two (2) years
C = value of outstanding works including value of contracts awarded but not yet
started
CA = Current Assets
CL =Current Liabilities
Hence, with
K =15.00
C =P153,750,000.00
CA =P10,250,000.00
CL =P 0.00
Therefore
NFCC ={[10,250,000.0) – {0.00} x {[15.00] – [0]
={[10,250,000.0}] X [15.00]}
={[153,750,000.00}] – {[0]}
NFCC = 153,750,000.00
ALYASA A. ABDULBASIT
General Manager/Prop