Net financial contracting capacity sample 2025

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The document outlines the formula for calculating the Net Financial Contracting Capacity (NFCC), which is determined by adjusting current assets and liabilities, factoring in the duration of contracts through a multiplier (K), and subtracting the value of outstanding contracts.

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What does the NFCC stand for?

Government agencies use Net Financial Contracting Capacity (NFCC) during bidding to ensure contractors have the capacity to complete an infrastructure project.

How do you calculate net financial contracting capacity?

9184, providing the same computation for NFCC requirement, are quoted hereunder: NFCC = [(Current assets minus current liabilities) multiplied by (K)] minus the value of all outstanding works or projects under ongoing contracts, including awarded contracts yet to be started.

What is NFCC in construction?

The Net Financial Contracting Capacity (NFCC) based on the above data is computed as. follows: NFCC = K (current asset current liabilities) minus value of all outstanding works under. ongoing contracts including awarded contracts yet to be started.

What is the purpose of the NFCC?

The NFCC level, a credit line and a certificate of a hold-out on cash deposit establish the bidders liquidity, its capacity to absorb the additional obligations in connection with the contract to be bid and to finance its implementation/completion.

How to solve NFCC computation?

2.6 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 provide for the equation to determine the NFCC, thus: 2 NFCC = [(Current assets minus current liabilities) (K)] minus the value of all outstanding or uncompleted portions of the projects under ongoing contracts, NPM No.