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Warranty against Structural Defects and Failures (Section 62.2.3.2 of Revised IRR RA 9184 vs. Section 62.2.3.4)

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Warranty against Structural Defects and Failures (Section 62.2.3.2 of Revised IRR RA 9184 vs. Section 62.2.3.4)

Post by depedrox on Wed Apr 23, 2014 11:28 am

Good morning!

How do you reconcile Section 62.2.3.2 of the Revised IRR, RA 9184 which provides:

Section 62.2.3.2 - The warranty against Structural Defects and Failures shall cover the following periods from final acceptance, except those occasioned by force majeure:

a) Permanent Structures: Fifteen (15) years
b) Semi-Permanent Structures: Five (5) years
c) Other Structures: Two (2) years

with 62.2.3.4 which provides - The warranty security shall be denominated in Philippine Pesos, remain effective for one (1) year from the date of issuance of the Certificate of Final Acceptance by the procuring entity, and returned only after the lapse of the said one (1) year period.

We're asking because our resident auditor (COA) is asking us to tell contractors to renew their warranty security after one (1) year. Is this interpretation right? Thanks.

depedrox
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Re: Warranty against Structural Defects and Failures (Section 62.2.3.2 of Revised IRR RA 9184 vs. Section 62.2.3.4)

Post by regina avelino on Wed Apr 23, 2014 12:07 pm

Please refer to section 62.2.4.

Likewise you should know this.  WARRANTY PERIOD refers to the period covered under section 62.2.3.2 which you cited above, such as the 15 years,, 5 years and 2 year, while the WARRANTY SECURITY PERIOD refers to the period of one year after final acceptance as provided under section 62.2.3.4.  the WARRANTY PERIOD is inclusive of the WARRANTY SECURITY PERIOD.

For example you have a completed vertical infrastructure project with a warranty period of 15 years.  during the warranty security period a structural defect occurred.  you can make the necessary reconstructions or restoration using the warranty security posted by the contractor as specified under section 62.2.3.3.  However, if the structural defects occurred after the warranty security period (one year after final acceptance) but within the warranty period, you can undertake the necessary restoration works and shall be entitled to full reimbursement by the parties found to be liable for expenses incurred as provided under section 62.2.4.

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