Requesting Entity: Bulacan State University (BSU)
Issues Concern: Substitution of the Retention Money
Clarification on the meaning of the phrase "provided that the project is on schedule and is satisfactorily undertaken" in Section 6.2 of Annex "E" (Contract Implementation Guidelines for the Procurement of Infrastructure Projects) of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184.
As part of the contract entered into between the procuring entity and the winning bidder (contractor), the contractor shall commence execution of the works on the start date and shall carry out the Works in accordance with the Program of Work submitted, as updated with the approval of the Procuring Entity's Representative and complete them by the Intended Completion Date. The Program of Work submitted by the contractor, including the construction schedule as approved by the PE will determine whether or not the project is on schedule and is satisfactorily undertaken in accordance with the contract. If upon request for the release of retention money, the Procuring Entity has determined that the contractor had satisfactorily undertaken the project in accordance with the Program of Work and construction schedule submitted and approved, it may then release the retention money substituted by a Surety Bond, provided that the release of the retention money is premised on the 50% completion of the work.