{Date}

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NOTICE TO SHOW CAUSE – TERMINATION OF THE CONTRACT FOR

_____________________

Sir:

This is to notify you that the (GOVERNMENT AGENCY) is terminating the Contract for
_________________ executed between GOVERNMENT AGENCY and Company A on ________________
under the following terms and conditions:

Mode of
Procurement

Works

Contract Price

Start Date

Original Completion
Date

Variation Order

Major Project
Components

Sites

Estimated
Production Volume

Mobilization

Upon verification, the Revised Completion Date of the project lapsed ____________ ,
without the contractor completing the Works in accordance with the contract.

This gives the Procuring Entity the right to terminate the contract due to the existence of
default on the part of the Contractor pursuant to Sub-clause (i), (ii) and (iii) of Clause 16.
Termination for Default of the Contractor of Section IV. General Conditions of Contract of the
bidding documents:

16. Termination for Default of Contractor

1
 (i) Due to the Contractor’s fault and while the project is on-going, it has incurred negative
slippage of fifteen percent (15%) or more in accordance with Presidential Decree 1870,
regardless of whether or not previous warnings and notices have been issued for the
Contractor to improve his performance;

(ii) Due to its own fault and after this Contract time has expired, the Contractor incurs delay
in the completion of the Work after this Contract has expired;

(iii) The Contractor:

(i) x x

(ii) x x x

(iii) does not execute the Works in accordance with this Contract or persistently or
flagrantly neglects to carry out its obligations under this Contract.

A copy of the Verified Report is attached herein for your reference.

You are hereby directed to submit, within a period of seven (7) calendar days from
receipt of this notice, a Verified Position Paper stating why:

(1) The contract should not be terminated;

(2) The Contractor should not be suspended from the GOVERNMENT AGENCY public
bidding process;
(3) Liquidated damages should not be imposed on the Contractor on account of the
delay in the performance of the Works under the contract; and
(4) The performance security posted by the Contractor should not be forfeited.

Failure to do so, either by inaction or by default, shall constrain GOVERNMENT AGENCY

to issue an Order terminating the contract.

FOR YOUR GUIDANCE.

Truly yours,

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