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Annex A-Computation of NFCC

The Net Financial Contracting Capacity (NFCC) is a measure of a firm's financial stability to take on additional contracts. It is calculated by taking the firm's current assets and subtracting current liabilities, then multiplying the result by a factor of either 10, 15, or 20 depending on contract duration. The value of all outstanding contracts is then subtracted to determine the NFCC.

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6K views1 page

Annex A-Computation of NFCC

The Net Financial Contracting Capacity (NFCC) is a measure of a firm's financial stability to take on additional contracts. It is calculated by taking the firm's current assets and subtracting current liabilities, then multiplying the result by a factor of either 10, 15, or 20 depending on contract duration. The value of all outstanding contracts is then subtracted to determine the NFCC.

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irish
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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COMPUTATION OF NET FINANCIAL CONTRACTING CAPACITY

The Net Financial Contracting Capacity (NFCC) 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

Where K = 10 for a contract duration of one (1) year or less


15 for more than one (1) year up to two 2) years
20 for more than two (2) years

Amount
Current Assets

Minus: Current Liabilities

Sub-Total

Multiplied by Value of K

Sub-Total
Minus: Value of Outstanding
Contracts
NFCC

Submitted By:

_________________________
Name of the Firm/Contractor

_______________________________
Signature of Authorized Representative

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