2014-10-14

NPM 050-2014

Requesting Entity: City of San Pedro

Issues Concern: Warranty Security

 

Details

Whether the forms of warranty security provided under the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 may be replaced by other forms of security.

[U]nder Section 62.1 of the IRR of RA 9184, the warranty shall be covered by either retention money in an amount equivalent to at least ten percent (10%) of every progress payment, or a special bank guarantee equivalent to at least ten percent (10%) of the total contract price. There are only two allowable forms of warranty security mentioned: (1) retention money; and (2) special bank guarantee.

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Applying the rule on statutory construction expressio unius est exclusio alterius, other forms of security apart from retention money and special bank guarantee cannot be considered as allowable forms of warranty security.