NPM 002-2006

Requesting Entity: Municipality of Santo Tomas, Batangas

Issues Concern: Clarifications on the Applicable Warranty Period under RA 9184 and its IRR-A



The matter was raised to the Inter-Agency Technical Working Group (IATWG) of the Government Procurement Policy Board (GPPB) last 02 March 2006 and the body was of the view that the warranty periods provided under Section 62.2.2 of the IRR-A of RA 9184, that is, fifteen (15) years for permanent structure; five (5) years for semi-permanent structure; and two (2) years for other structures apply to the infrastructure project alone. Accordingly, the equipment installed in an infrastructure project shall be governed by the applicable warranty period for goods as provided under Section 62.1 of the IRR-A.

Furthermore, the IATWG opined that a procuring entity may require a longer warranty period for the equipment based on the expected life span of such equipment, or in accordance with the warranty period provided by the supplier of such equipment.

[In addition,] the IATWG was of the opinion that the contractor must post a separate warranty security for the equipment based on its unit contract price stated in the bill of quantities, and for such duration depending on the life expectancy of the equipment taking into consideration normal wear and tear, aside from the warranty security for the civil work or infrastructure project. However, the warranty security of the structure shall be based on the total contract price less the contract price of the equipment appearing on the bill of quantities.

Moreover, to avoid confusion among prospective bidders on the applicable warranty periods, it was suggested that the procuring entity may include in its bidding documents, a schedule of warranties providing the timetable of warranty periods for the equipment, or machineries included in the bill of quantities as well as the warranty period for the civil works or infrastructure project.