NPM 010-2009

Requesting Entity: National Commission on Indigenous Peoples

Issues Concern: Warranty for Goods Procurement



Whether the ten percent (10%) warranty retention covers all procurement of supplies and equipment regardless of amount and supplier, and/or the parameters relative thereto.

The imposition of warranty for the procurement of goods is specifically sanctioned by Section 62 (a) of R.A. 9184. Further, Section 62.1 of the IRR-A of R.A. 9184, merely provided for the warranty period (i.e. 3 months for supplies, 1 year for equipment), and the percentage if the retention money (i.e, at least ten percent (10%) of every progress payment) or special bank guarantee (i.e, at least ten percent (10%) of the total contract price).

Perusal of the foregoing that neither RA 9184 nor its IRR-A makes a distinction as to the type of goods and suppliers that would be covered by the warranty requirement. Thus, we are constrained to opine that the warranty provision applies to all types of goods, and to all suppliers alike, regardless of amount and qualification/ category of the supplier.