Step 8 - Have the Contract Signed and Approved and Issue the NTP

IRR-A Section 37 specifies the rules regarding contract signing and approval.

When must the winning bidder and the Procuring Entity enter into a contract?

The winning bidder and the Procuring Entity must enter into a contract immediately after the former
has submitted the performance security and all other documentary requirements within the period
specified in the IRR-A. The parties must sign the contract within ten (10) calendar days from receipt
by the winning bidder of the Notice of Award. (IRR-A Section 37.3). The Procuring Entity signatory is
encouraged to sign within the same day as the signing of the bidder as there are penalties against
delaying, without justifiable cause, the award of the contract.

What are the timelines to be considered with respect to contract approval?

When, after contract signing, further approval of a higher authority is required,

the approving authority for the contract, or his duly authorized representative,
shall be given a maximum of fifteen (15) calendar days from receipt thereof,
together with all documentary requirements to perfect the said contract, to
approve or disapprove it. In the case of GOCCs and GFIs, when further
approval of the governing board is required, the said governing Board or its
duly authorized representative has twenty-five (25) calendar days. (IRR-A
Section 37. 3)
When should the Procuring Entity issue the NTP?

The NTP must be issued together with a copy or copies of the approved contract to the successful bidder
within three (3) calendar days from the date of approval of the contract by the appropriate government
approving authority. (IRR-A Section 37.5)

When is a contract “effective”?

If an affectivity date is provided in the NTP by the Procuring Entity concerned,

all notices called for by the terms of the approved contract shall be effective
only from such affectivity date, but such affectivity date should not be later
than seven (7) calendar days from the issuance of the NTP.

Who are the Parties involved in Contract Signing and Approval and Issuance of the NTP? The following
parties are involved in contract signing and approval and in the issuance of the NTP: 1. The Procurement
Unit/Office/End-User Unit; 2. The Head of the Procuring Entity and/or higher contract approving
authority; and 3. The winning bidder.