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NFCC is a financial indicator of the contractor's ability to take a contract. The higher NFCC is, the better. The NFCC should at least be equal to the Approved Budget for the Contract (ABC).
The computation for the Net Financial Contracting Capacity (NFCC) should be included in the eligibility documents following the formula and format below:
NFCC = ((current assets minus current liabilities) multiplied by (K)) minus the value of all outstanding works or ongoing projects including contracts to be started.
Note: K is 10 for a contract duration of one year or less, 15for a contract duration of more than one year up to two years, and 20 for a contract duration of more than two years.
*Current assets and current liabilities should be picked up from the corresponding entry in the latest audited financial statement.
*The NFCC should at least be equal to the Approved Budget for the Contract (ABC).
Example : Current Assets -- P 5.2M
Current Liabilities - P 4.1M
Value of all Outstanding Works/Projects -- P 1.1M
NFCC = (5.2M -- 4.1M) * 10 -- 1.1M
NFCC = 9.9M
What else can I help you with?
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Why do lenders use gross income instead of net income when determining loan eligibility?
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How do you determine someone's net worth?
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Formula for net lifting capacity for crane?
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i found on the net that it was nonfinancial
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What is the difference between net credit and net debit in financial transactions?
The difference between net credit and net debit in financial transactions is that net credit means the total amount of money received or credited to an account, while net debit means the total amount of money paid out or debited from an account.
How is net worth calculated?
Net worth is the amount by which assets exceed liabilities. In other words, your net worth is the difference between what you own and what you owe. Calculating your net worth can be a useful tool to gauge your financial health and your financial progress over time.
Why do lenders use gross income instead of net income when determining loan eligibility?
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How do you determine someone's net worth?
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