snenoie Government Procurement Polley Board - Technical Support Office £°% (transparency_seal.php) ® (https:/Awww.foi.gov.ph) 2017-12-29 NPM No. 120-2017 Requesting Entity: Social Housing Finance Corporation Issues Concern: Retention Fees; Warranty Security Details Whether the Retention Fee, as contemplated in Annex “E” of the Contract Implementation Guidelines for the Procurement of Infrastructure Projects, is superseded by the Warranty Security provided under Section 62.2.3.3 of the 2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 ‘The “final acceptance of the works by the procuring entity” which marks the period when the retention money may be released, also marks the commencement of the warranty period contemplated in Section 62.2.3 of the 2016 revised IRR of RA 9184. Itis important to note, however, that retention money is intended to cover “uncorrected discovered defects and third party liabilities” prior to the issuance of the final acceptance while warranty security intends to cover “structural defects and failures” after the issuance of the procuring entity of the final acceptance and will be valid for a certain period, depending on the type of structure. Thus, the warranty security does not supersede the retention money, as the two serve different purposes. Back REPUBLIC OF THE PHILIPPINES * Official Gazette Office of the President * Official Directory Official Calendar hitps:iwww.gppb.gov phiGPPBTSO_Non-Poliy/1863, 4sinenoie Government Procurement Policy Board - Technical Support Office Prva. yg wir? EXECUTIVE * Office of the President + Office of the Vice President + Department of Education + Department of interior and Local Government * Department of Finance + Department of Health + Department of Science and Technology + Department of Trade and Industry LEGISLATIVE + Senate of the Philippines + House of Representatives JUDICIARY + Supreme Court + Court of Appeals + Sandiganbayan + Court of Tax Appeals + Judicial Bar and Council SITE ANALYTICS hitps:iwww.gppb.gov phiGPPBTSO_Non-Poliy/1863,snenoie hitps:iwww.gppb.gov phiGPPBTSO_Non-Poliy/1863, Government Procurement Policy Board - Technical Suppor Office 313