NPM No. 115-2016

Requesting Entity: Tagum Water District

Issues Concern: Retention Money for Expendable Goods



Whether the retention money can be released to the supplier of expendable goods short of one year if the Special Conditions of the Contract (SCC) specifically states that it will only be released after one year from the date of acceptance.


[T]he Generic Procurement Manual (GPM) for Goods clarified that if the warranty period is longer than the minimum period of three (3) months for supplies and one (1) year for equipment, the period beyond the minimum period need not be covered by retention money or special bank guarantee. After the lapse of the minimum period, the Procuring Entity must release the retention money or special bank guarantee provided that the goods supplied are free from patent and latent defects and all the conditions imposed under the contract have been fully met.