Occasionally, after the order has been awarded, changes may occur in price, quantity, delivery schedule, or terms and conditions which may come from the vendor or Meralco. If for valid reasons or unavoidable circumstances Meralco needs to change order provisions, Meralco will initiate a change request to the vendor. Changes will take effect upon mutual agreement of both parties. On the other hand, if the change in the scope of the contract emanates from the vendor, the order will merit a re-evaluation, or re-bidding.
All deliveries will be supported by the proper delivery documents and will be received based on order specifications.
To facilitate acceptance of deliveries, vendors are encouraged to attach a copy of the purchase order or call order to the delivery receipt. Deliveries will be validated against the order.
Items not covered or in excess of the quantity specified in the purchase order or call order will be returned to the vendor.
All deliveries must follow delivery instructions/schedules as stipulated in the contract or purchase order/call order. Non-conformance to contract provisions or delivery instructions may result to rejection of deliveries.
Unless diverted by an authorized Meralco employee, deliveries will be made only to the address specified in the order.
Delivered commodities which failed to meet order specifications/quality will be replaced immediately. Inability to replace rejects may initiate cancellation of the remainder of the order and de-listing of the vendor. For non-critical items; In cases where the vendor is willing to replace the rejected item, but it is not feasible for the vendor to ship the replacement, the vendor may opt to refund the equivalent amount of the item, including taxes and duties, that was already paid by Meralco.
Late Deliveries / Project Delays
Late deliveries or project delays will be subject to penalty as specified in the terms and conditions of the contract. The penalty will be one-tenth (1/10) of percent for every day of unexcused delay but not to exceed ten percent (10%) of the contracted amount. Unexcused delays due to the fault of the vendor may result in the cancellation of the order and forfeiture of the performance/surety bond of the vendor.
Cancellation of Purchase Order
Cancellation of purchase orders are resorted to when the vendor cannot deliver within the specified period, or there is an unexcused delay in the project, or when the vendor cannot replace wrong/damaged deliveries, or any other reasons relating to the incapacity of the vendor to perform.
In the event that the requisitioning office has a change in plan and may forego the ordered item, the purchase order cancellation will likewise be initiated subject to the contract provisions and consent of the vendor.
Warranty and Guarantee
Vendors will guarantee that their product or service is reliable and free from known defects and that vendor will, without charge, repair or replace defective parts/job within a given time limit under certain conditions. The vendor will be responsible for the loss or damage of property and third party liability as a result of his failure, neglect or carelessness during the execution of the order.
The vendor will likewise ensure compliance with Meralco's safety rules and regulations, and local/national/international laws governing the manufacture, sale and delivery of goods and services as ordered by Meralco. Meralco will not in any way be responsible, accountable or liable for the violations of the vendor of any laws, ordinances or regulations.
- Long-term contracts are contracts that are in effect for more than one (1) year. These contracts are established to meet the following objectives:
- To ensure continuity in supply;
- To increase Meralco's bargaining power by providing price reduction opportunities in bulk procurement and long-term agreements;
- To shorten the purchase lead time by reducing routine tasks associated with regular processing procedures and;
- To support vendors by allowing long-term production planning and promote harmonious business relationships.
A call order is a notice to deliver goods or services against an established long-term contract.