Requesting Entity: Quezon City General Procurement Office

Issues Concern: Force Majeure in Infrastructure Contracts

Details

Whether it is possible to include force majeure within the coverage of the warranty against structural defects of fifteen (15) years for permanent structures and five (5) years for semi-permanent structures in the Terms of Reference for infrastructure contracts.

[W]hile the Local Government of Quezon City could freely stipulate the terms and conditions in contracts that it enters into, no contractual stipulation therein should be contradictory to law, morals, good customs, public order or public policy. Considering that RA 9184 and its revised IRR and the PBDs for Infrastructure Projects clearly provide that the contactor shall neither be liable for damage or destruction of works occasioned by force majeure nor shall the contractor’s warranty cover Structural Defects/Failures occasioned by force majeure, then the Local Government of Quezon City could not include provisions in the Terms of Reference for infrastructure contracts that are contrary to the provisions of law – to do so would be a wanton violation of RA 9184 and its revised IRR.