RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

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RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

Post by Recks1925 on Mon Nov 14, 2011 1:19 pm

RA 9184 was silent about the method of releasing retention money that was held as warranty for certain goods/infra or services rendered by the contractor. Unlike the performance security which clearly states that a certificate of acceptance should be issued before releasing such money, the warranty section only states that the retention money can only be released upon lapse of warranty period.

My inquiry is this.. does release of retention money still have to pass through the BAC? Who will approve such release? Can the head of the Accounting or Comptroller have the descretion to approve it since the provision regarding relaease of warranty in due time is stated in the contract?

Please enlighten me on this. Very Happy
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Re: RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

Post by jcolas on Tue Nov 15, 2011 10:58 am

by Recks1925 Yesterday at 12:19 pm

.RA 9184 was silent about the method of releasing retention money that was held as warranty for certain goods/infra or services rendered by the contractor. Unlike the performance security which clearly states that a certificate of acceptance should be issued before releasing such money, the warranty section only states that the retention money can only be released upon lapse of warranty period.

My inquiry is this.. does release of retention money still have to pass through the BAC? Who will approve such release? Can the head of the Accounting or Comptroller have the descretion to approve it since the provision regarding relaease of warranty in due time is stated in the contract?

Please enlighten me on this


It is the HOPE in his capacity as the approving officer that should approve the release of the Retention Money, with the recommendation of the Project Engineer, of course. You should remember that this phase is already way past the responsibility of the BAC. Neither can the Accountant/Comptroller approve the release of the Retention Money.
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Re: RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

Post by Recks1925 on Tue Nov 15, 2011 11:45 am

Thanks a lot. Whew.. syanga pala. BAC's function ends after the issuance of NTP right?
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Re: RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

Post by jcolas on Tue Nov 15, 2011 1:15 pm

"Reckswrote"

.Thanks a lot. Whew.. syanga pala. BAC's function ends after the issuance of NTP right?


No. BAC'S function shall end upon issuance of the BAC Resolution to Recommend award to the Head of the Procuring entity.
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Re: RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

Post by Recks1925 on Tue Nov 15, 2011 7:01 pm

OK thanks
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Re: RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

Post by Christine Llanita Ancheta on Fri Nov 18, 2011 3:05 pm

The office of the city accountant told us that the retention money for the purchase of one unit computer is one year from purchase but the as i read the forum it states that it is the hope who will decide on issuance of retention money or after the warranty period. Can you enlighten me also on this please.

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Re: RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

Post by RDV @ GP3i on Fri Nov 18, 2011 3:24 pm

Christine Llanita Ancheta wrote:The office of the city accountant told us that the retention money for the purchase of one unit computer is one year from purchase but the as i read the forum it states that it is the hope who will decide on issuance of retention money or after the warranty period. Can you enlighten me also on this please.

The retention money for the procurement of goods, like computer, is a form of warranty security. For non-expendable goods, like computers, the warranty period is one (1) year. After the lapse of the warranty period, provided the goods are free from patent or latent defects, the Certificate of Acceptance is issued and the retention money will have to be released/freed already.

However, if you are procuring only one (1) unit of computer and you procure it by way of Shopping or Small Value Procurement (svp), you may no longer require retention money or special bank guarantee, which are the two forms of warranty securities for goods.

The release of the retention money will be approved bybthe HOPE or his duly authorized official.
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Re: RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

Post by engrjhez® on Sun Nov 20, 2011 11:01 am

jcolas wrote:"Reckswrote"

.Thanks a lot. Whew.. syanga pala. BAC's function ends after the issuance of NTP right?


No. BAC'S function shall end upon issuance of the BAC Resolution to Recommend award to the Head of the Procuring entity.

At least for the procurement process. The BAC still has to prepare and submit the Procurement Monitoring Report (post procurement process) to the GPPB in accordance with Sec. 12.2 of the IRR. Smile
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Re: RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

Post by jcolas on Sun Nov 20, 2011 10:00 pm

"Christine Llanita Ancheta wrote"

it is the hope who will decide on issuance of retention money or after the warranty period. Can you enlighten me also on this please.

The City Accountant is the alter ego of the Head of the Procuring entity when it comes to accounting, but it is the HOPE or his duly authorized representative who approves the release of the Retention Money. Of course, the HOPE has to consult all the other officers who are directly involved in the procurement. Lastly, I would like to welcome you mam Christine to the Forum.
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Re: RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

Post by sunriser431 on Mon Nov 21, 2011 10:58 pm

Christine Llanita Ancheta wrote:The office of the city accountant told us that the retention money for the purchase of one unit computer is one year from purchase but the as i read the forum it states that it is the hope who will decide on issuance of retention money or after the warranty period. Can you enlighten me also on this please.
Sharing experience
For us GOCCs, It involves the end-user unit cause they are in better position to provide information if the unit performs as expected and free from latent defects, etc. A certification was required (end-user unit) after a lapse of the warranty period to support the release of the retention money.
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Re: RELEASE RETENTION MONEY -WHO WILL APPROVE IT?

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