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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

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