Latest topics

Warranty Period of Infra Projects

View previous topic View next topic Go down

Warranty Period of Infra Projects

Post by msm326 on Fri Jul 03, 2009 9:43 am

Good Day....I need to solicit opinion regarding this matter....Based on RA 9184 , warranty period of a particular infrastructure projects last for a particular periods and it is also stated that one year after is the acceptance of the project for any defects that might happen can be retrofit. My query is after the one year period and project was accepted by the end user , Do the contractor would have to post for a surety for the warranty period ....I believe that surety is callable on demand for a period of one year ...What will be the treatment on this matter?
Thank you very forum contributors for your insights .....
msm326 Very Happy
avatar
msm326
Valued Contributor
Valued Contributor

Female Number of posts : 264
Company/Agency : LGU SANTA CRUZ
Occupation/Designation : MUNICIPAL GENERAL SERVICES OFFICE
Registration date : 2009-06-03

Back to top Go down

Re: Warranty Period of Infra Projects

Post by sunriser431 on Fri Jul 03, 2009 12:02 pm

May I know if you are referring to GGC clause 12.4?
PBDs For Infrastructure
Section III. General Conditions of Contract
GGC Clause 12.Contractor’s Risk and Warranty Security
GGC Clause 12.1 xxxx
GGC Clause 12.2 xxxx
GGC Clause 12.3.After final acceptance of the Works by the PROCURING ENTITY, the Contractor shall be held responsible for structural defects and/or failure of the completed project within the following warranty periods from final acceptance, except those occasioned by force majeure and those caused by other parties:
(a)Permanent Structures: Fifteen (15) years
xxxxx
(b)Semi-Permanent Structures: Five (5) years
xxxxx
(c)Other Structures: Two (2) years
xxxxx
GGC Clause 12.4.The Contractor shall be required to put up a warranty security in the form of cash, bank guarantee, letter of credit, GSIS or surety bond callable on demand, in accordance with the following schedule:
Form of Warranty and the Minimum Amount in Percentage (%) of Total Contract Price
1. Cash deposit, cash bond or letter of credit Five Percent (5%)
2. Bank guarantee Ten Percent (10%)
3. Surety bond Thirty Percent (30%)

GGC Clause 12.5.The warranty security shall be stated in Philippine Pesos and shall remain effective during the applicable warranty period provided in GCC Clause 12.3
12.6.In case of structural defects/failure occurring during the applicable warranty period provided in GCC Clause 12.3, the PROCURING ENTITY shall undertake the necessary restoration or reconstruction works and shall be entitled to full reimbursement by the parties found to be liable, of expenses incurred therein upon demand, without prejudice to the filing of appropriate administrative, civil, and/or criminal charges against the responsible persons as well as the forfeiture of the warranty security posted in favor of the PROCURING ENTITY. For purposes of this clause, the term “structural defects” shall mean major faults/flaws/deficiencies in one or more key structural elements of the Works, which may lead to structural failure of the completed elements or structure. The term “structural failures” is defined as an occurrence where one or more key structural elements in an infrastructure facility fails or collapses, thereby rendering the facility or part thereof incapable of withstanding the design loads, and/or endangering the safety of the users or the general public.
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: Warranty Period of Infra Projects

Post by msm326 on Fri Jul 03, 2009 2:28 pm

yes
avatar
msm326
Valued Contributor
Valued Contributor

Female Number of posts : 264
Company/Agency : LGU SANTA CRUZ
Occupation/Designation : MUNICIPAL GENERAL SERVICES OFFICE
Registration date : 2009-06-03

Back to top Go down

Re: Warranty Period of Infra Projects

Post by RDV @ GP3i on Sat Jul 04, 2009 11:17 am

msm326 wrote:Good Day....I need to solicit opinion regarding this matter....Based on RA 9184 , warranty period of a particular infrastructure projects last for a particular periods and it is also stated that one year after is the acceptance of the project for any defects that might happen can be retrofit. My query is after the one year period and project was accepted by the end user , Do the contractor would have to post for a surety for the warranty period ....I believe that surety is callable on demand for a period of one year ...What will be the treatment on this matter?
Thank you very forum contributors for your insights .....
msm326 Very Happy

Yes, the contractor has to post a warranty security after the end of the 1-year defects liability period (when the project has already been accepted and the retention money and performance security have been returned to the contractor).

In the proposed one IRR, there is a provision that posting of the warranty security will only be for a year after acceptance even if the warranty period is either 2 years, 5 years or 15 years, depending on the structure built. In other words, while the contractor is still responsible during the warranty period, the warranty security will only be for a year after acceptance of the project by the procuring entity.
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: Warranty Period of Infra Projects

Post by sunriser431 on Tue Jul 21, 2009 4:54 pm

msm326 wrote:Good Day....I need to solicit opinion regarding this matter....Based on RA 9184 , warranty period of a particular infrastructure projects last for a particular periods and it is also stated that one year after is the acceptance of the project for any defects that might happen can be retrofit. My query is after the one year period and project was accepted by the end user , Do the contractor would have to post for a surety for the warranty period ....I believe that surety is callable on demand for a period of one year ...What will be the treatment on this matter?
Thank you very forum contributors for your insights .....
msm326 Very Happy

Yes, its one of those mandatory requirements, it shall remain effective during the warranty period as provided in Section 62.2.2 of the GPRA and returned only after the lapse of the warranty period. But with proposed update on IRR The warranty security period shall be effective for one (1) year from the date of issuance of the Certificate of Final Acceptance by the procuring entity, and shall be returned only after the lapse of the said one (1)-year period.
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: Warranty Period of Infra Projects

Post by marriola on Thu Jul 07, 2011 7:41 pm

Hola! Buenas dias a todo.
Can somebody please provide what applicable provisions or available remedies for the procuring entity on erring infra contractor whose project found with "defects" after completion and certification of final acceptance?
Can the erring contractor be prevented or disqualified from joining or award future contracts?
Muchisimas gracias
avatar
marriola
New Member
New Member

Male Number of posts : 23
Company/Agency : lgu zamboanga city
Occupation/Designation : bac member
Registration date : 2008-10-21

Back to top Go down

Re: Warranty Period of Infra Projects

Post by RDV @ GP3i on Sat Jul 09, 2011 7:23 am

marriola wrote:Hola! Buenas dias a todo.
Can somebody please provide what applicable provisions or available remedies for the procuring entity on erring infra contractor whose project found with "defects" after completion and certification of final acceptance?
Can the erring contractor be prevented or disqualified from joining or award future contracts?
Muchisimas gracias

Buenas dias, marriola.

After the issuance of the Certificate of Acceptance (CA), which is after the lapse of the defects liability period (1 year after completion), the contractor should have been required to post a warranty security. Under the revised IRR, the warranty security should be for a period of one year after the issuance of the CA. If the structural defects were discovered during the warranty security period, the procuring entity can, of course, call on the said warranty security. If the defects were discovered after the lapse of the warranty security period, the defects are still covered by the warranty period (although no longer covered by any warranty security). The contractor is still responsible for correcting those defects within the warranty period after due notice from the procuring entity. It is only if the contractor refuses to correct those defects could the said contractor be prevented from joining future biddings with the procuring entity but only after the contractor is suspended after due process.
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: Warranty Period of Infra Projects

Post by marriola on Sat Jul 09, 2011 5:35 pm

HoLa rgv,
Muchas gracias.
avatar
marriola
New Member
New Member

Male Number of posts : 23
Company/Agency : lgu zamboanga city
Occupation/Designation : bac member
Registration date : 2008-10-21

Back to top Go down

Re: Warranty Period of Infra Projects

Post by Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum