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Applicable provision on warranty for the Procurement of Consultancy Services...!

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Applicable provision on warranty for the Procurement of Consultancy Services...!

Post by BAC Sec. on Thu May 06, 2010 4:20 pm

Tulong lang and I hope I did not misread Section 62 of the Revised IRR of RA 9184, as follows:
"Section 62. Warranty
62.1. For the procurement of goods, in order to assure that manufacturing defects shall be
corrected by the supplier, a warranty security shall be required from the contract
awardee for a minimum period of three (3) months, in the case of Expendable
Supplies, or a minimum period of one (1) year, in the case of Non-expendable
Supplies, after acceptance by the procuring entity of the delivered supplies.
The obligation for the warranty shall be covered by either retention money in an
amount equivalent to at least ten percent (10%) of every progress payment, or a
special bank guarantee equivalent to at least ten percent (10%) of the total contract
price. The said amounts shall only be released after the lapse of the warranty period
or, in the case of Expendable Supplies, after consumption thereof: Provided,
however, That the supplies delivered are free from patent and latent defects and all
the conditions imposed under the contract have been fully met.(a)

No mention in the above-quoted provision of warranty on Consultancy Services which our Auditor is asking for ,that the same should have been clearly stated in the contract or any reference in RA 9184. Embarassed
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Re: Applicable provision on warranty for the Procurement of Consultancy Services...!

Post by Niwram on Thu May 06, 2010 4:42 pm

That is correct there is no warranty security provided for the procurement of consultancy services.
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Re: Applicable provision on warranty for the Procurement of Consultancy Services...!

Post by amang'65 on Fri May 07, 2010 12:06 pm

how about on the performance bond for consultancy, suppose the project duration is 5 years where the consultancy service shall likewise remain, then the performance bond can only be refunded after the project duration which is the time that the project may have been accepted? am i right?
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Re: Applicable provision on warranty for the Procurement of Consultancy Services...!

Post by Niwram on Tue May 11, 2010 10:50 am

That is also correct po.. it is stated in the Philippine Bidding document for consultancy services specifically in the ITB no. 31. and under section 39.4 provides that the performance security shall remain valid until issuance by the Procuring entity of the final Certificate of Acceptance.
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Re: Applicable provision on warranty for the Procurement of Consultancy Services...!

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