Retention Money on Revised IRR

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Retention Money on Revised IRR

Post by bonbon on Thu Jul 23, 2009 9:43 am

The revised irr provides amendment allowing release of retention money even if the retention period has not lapsed provided that the items are consumed and that there are no patent or latent defects discovered.

I invoked this proviso before the procuring entity but they have not received any official copy of the amendment which resulted to the deferment of resolution.

Can anyone please help?
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Re: Retention Money on Revised IRR

Post by RDV @ GP3i on Fri Jul 24, 2009 11:26 am

bonbon wrote:The revised irr provides amendment allowing release of retention money even if the retention period has not lapsed provided that the items are consumed and that there are no patent or latent defects discovered.

I invoked this proviso before the procuring entity but they have not received any official copy of the amendment which resulted to the deferment of resolution.

Can anyone please help?

The revised IRR although already approved by the GPPB on July 22, will only take effect thirty days after its publication in the Official Gazette.

You can therefore provide the procuring entity with the GPPB Opinion in NPM 108-2004 ( http://www.gppb.gov.ph/opinions/view_opinion.asp?o_id=124), which is quoted, partly, as follows:

"Generally, the obligation on the warranty is extinguished upon the concurrence of the expiration of the term, which is three (3) months, and the resolutory condition that goods are without defects. However, in case of highly-perishable and fungible goods, their consumption would obviously bring about the extinguishment of the warranty obligation, since the use of the thing implies the fulfillment of the resolutory condition that the goods are without defects . Furthermore, since the goods, which are the object of the warranty obligation, no longer exists upon consumption, this will bring about the concomitant extinguishment of the obligation, and hence, the term of three (3) months on the warranty becomes irrelevant."

The purpose of the retention money or special bank guarantee for goods is to serve as a warranty security. If the thing has already been consumed and the 3-month warranty already becomes irrelevant, the same would hold true for the security itself.
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Re: Retention Money on Revised IRR

Post by ibauko on Tue Dec 15, 2015 6:38 pm

Good day, if in case that in a private entity contract with a contractor which in there building contract does not states any 10 retention in there signed contracf.Will it be still applied to there contract the building contract? Will the end user has the right to hold the 10% of the total contract for one year? Even that the contractor is willing to issue a surety bond to the owner.? And also there consultant is not a registered civil engineer nor architect in profession? Thank you

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Re: Retention Money on Revised IRR

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