Policies and ProceduresPrint this page 

Rules and regulations have been established for guidance and compliance by all suppliers/contractors. Penalties established for violations of the said rules and regulations are not meant to be punitive but corrective.

TNB shall take the appropriate measures against all erring suppliers in order to keep the integrity of its purchasing system and to maintain a pool of competent suppliers/contractors.

Penalties for Rejection of Award

Suppliers/ contractors shall be subjected to penalties for any refusal to accept the Letter of Intent/ Letter of Acceptance/ Purchase Order within the validity period. However, penalty shall not be imposed if:

• TNB's offer is different from the original specification stated in the tender/ quotation
• TNB’s offer is different from the tenderer’s proposal

The penalties are as follows:

1. The Tender Bond, if applicable, is forfeited
2. First offence - final warning or blacklisted from participating in TNB’s future procurement exercises for a minimum period of six (6) months and maximum period of one (1) year 
3. Second offence – blacklisted for a minimum period of one (1) year and maximum period of two (2) years
4. For the third offence, suppliers will be de-registered and barred from participating in any of TNB’s future procurement exercises.

Penalties for Non-Performance

Action for non-performance shall be taken according to the agreed terms and conditions of the contract. Besides Liquidated and Ascertained Damages (LAD) or contract termination, non-performing contractors shall be subjected to further penalties as follows:

Non-performing contractors shall be subjected to further penalties as follows:

• Blacklisted from participating in TNB’s future procurement exercises for a period of one (1) year to three  (3) years
• For the second offence, de-registered and barred from participating in any of TNB’s future procurement exercises
• For companies that have been de-registered, the directors and the majority shareholders shall also be blacklisted to ensure that they do not form another company to participate in TNB’s future procurement exercises

Penalties for each offense (which may range from reprimand to de-listing) are not absolute and may vary depending on the gravity and frequency of the offense and are subject to the discretion of the TNB.