2015-10-12

NPM No. 067-2015

Requesting Entity: Senate of the Philippines

Issues Concern: Retention Money

 

Details

Clarification on the price threshold for the imposition of the ten percent (10%) retention money.


[T]here is no price threshold for the imposition of the ten percent (10%) retention money in the procurement of goods and infrastructure projects. It does not distinguish whether the amount of contract involves higher or lesser amount of money. Regardless of the contract cost, it shall be retained by the Procuring Entity for every progress payment, except when the supplier or contractor opted to substitute it by any of the allowable forms of security, after fulfillment of certain requirements, or when the mode of procurement does not require it under existing rules and regulations.