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contract period/duration

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contract period/duration

Post by leobcaleja on Tue Nov 23, 2010 6:33 pm

Is the defects liability period included as part of the contract duration? Or only the construction period?
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Re: contract period/duration

Post by riddler on Tue Nov 23, 2010 6:48 pm

leobcaleja wrote:Is the defects liability period included as part of the contract duration? Or only the construction period?

methinks, that DLP's is not a part of contact durAtion because it is considered as Warranty after a Certificate of Completion (CC) has been issued by the PE. The duration of this DLP is one (1) year after the CC have elapsed for which a Certificate of Acceptance (CA) shall finally be issued by the PE upon the request of the Contractor Very Happy
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Re: contract period/duration

Post by leobcaleja on Tue Nov 23, 2010 7:24 pm

That is also what i think. But our client said that after completion of the project there is a warranty period of 1 year after which the contract expires.
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Re: contract period/duration

Post by engrjhez® on Wed Nov 24, 2010 6:56 am

leobcaleja wrote:That is also what i think. But our client said that after completion of the project there is a warranty period of 1 year after which the contract expires.
Defects liability period is still part of the contract (GCC 12.2) starting from date of completion to final acceptance (1 year). The contract is even in effect after DLP to certain periods (guided by the IRR and stipulated in SCC) covering "structural defects" and even requires the contractor to post a warranty security for that purpose (GCC 12.4-12.8 ).

The contract technically expires after issuance of Certificate of Final Acceptance Smile
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Re: contract period/duration

Post by leobcaleja on Wed Nov 24, 2010 11:46 am

During the DLP, can the procuring entity issue additional works to the contractor that are relevant to the contract?
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Re: contract period/duration

Post by engrjhez® on Wed Nov 24, 2010 2:44 pm

leobcaleja wrote:During the DLP, can the procuring entity issue additional works to the contractor that are relevant to the contract?
No.

Defects liability period only covers "...repair works, ..., of any damage to the infrastructure on account of the use of materials of inferior quality...".

This shall be covered by Performance Security as stipulated in Sec.39.1 of the IRR.
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Re: contract period/duration

Post by leobcaleja on Wed Nov 24, 2010 6:30 pm

If the contract is effective up to the period of warranty after the DLP, what happens to the performance security, retention money, warranty if there is a termination of contract (1) due to fault of the contractor or (2) due to fault of the procuring entity?
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Re: contract period/duration

Post by sunriser431 on Wed Nov 24, 2010 7:30 pm

leobcaleja wrote:If the contract is effective up to the period of warranty after the DLP, what happens to the performance security, retention money, warranty if there is a termination of contract (1) due to fault of the contractor or (2) due to fault of the procuring entity?
I believe your concern have been incorporated in the PBDs.Try this LINK and read Section IV. General Conditions of Contract
Section xxxx
Section 16.Termination For Defaults of the Contactor
Section 17.Termination for Default of Procuring Entity
Section 18.Termination for other causes
Section 19. Procedures for Termination of contracts

Section 20 xxxx
Hope it might help. bounce
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Re: contract period/duration

Post by engrjhez® on Thu Nov 25, 2010 6:08 am

leobcaleja wrote:If the contract is effective up to the period of warranty after the DLP, what happens to the performance security, retention money, warranty if there is a termination of contract (1) due to fault of the contractor or (2) due to fault of the procuring entity?

Under Sections 39.4 and 39.5 of the Revised IRR:
39.4. The performance security shall remain valid until issuance by the procuring entity of the final Certificate of Acceptance.

39.5. The performance security may be released by the procuring entity after the issuance of the Certificate of Acceptance, subject to the following conditions:
a) Procuring entity has no claims filed against the contract awardee or the surety company;
b) It has no claims for labor and materials filed against the contractor; and
c) Other terms of the contract
.

On the GCC of PBD (Infra) 3rd Ed:
7.2. The performance security posted in favor of the Procuring Entity shall be forfeited in the event it is established that the Contractor is in default in any of its obligations under the Contract.

If the termination of contract was due to the fault of the government, Performance Security remains as it was posted in favor of the Procuring Entity. Smile


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