Retention Money Not Deducted from Progress Payments
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency failed to keep back 10% of payments to contractors as a safety buffer, leaving the government exposed to losses of over P70 million if contractors fail to finish or fix defects.
Why It Matters
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Original Audit Finding Excerpt
"Retention money from payments made for both completed and ongoing projects, with retention amounts of P48,808,328.91 and P21,508,944.97, respectively, or a total amount of P70,317,273.89 was not deducted from contractor's progress payment."