2014-10-08

NPM 033-2014

Requesting Entity: City Government of Navotas

Issues Concern: Warranty Security and Warranty against Structural Defects

 

Details

Guidance on the rules on the implementation of the warranty security requirement under Section 62.2.3.3 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 vis--vis the warranty period against structural defects under Section 62.2.32 of the same IRR.

The warranty period for infrastructure projects covers the periods of two (2), five (5), and fifteen (15) years from final acceptance for other structures, semi-permanent structures, and permanent structures, respectively. On the other hand, the warranty security period pertains to the duration of the effectivity of the warranty security required under 62.2.3.3 of the IRR, which is one (1) year from the date of issuance of the certificate of final acceptance by the procuring entity.

[T]he warranty security posted by the contractor shall be retained by the procuring entity for the duration of the warranty security period, i.e., one (1) year from the issuance of the certificate of final acceptance and returned thereafter regardless of the type of the infrastructure facility involved. However, it should be pointed out that even after the lapse of the warranty security period, the contractor continues to be responsible/liable for any structural defect/failure that will occur on the infrastructure facility due to its fault for the duration of the applicable warranty period, i.e., two (2), five (5), or fifteen (15) for other structures, semi-permanent structures, or permanent structures, respectively.