Performance Bonds Not Renewed or Inactive for Ongoing Construction Projects
National Housing Authority · 2023
This summary was generated automatically from the source document and may contain errors. It is not an official interpretation and should not be relied upon as legal guidance. Review the original excerpt and source document to verify before citing or acting on it.
What Happened?
Category: Financial ManagementIssue: Non-complianceThe required performance bonds for some construction projects are either expired, not renewed, or their status is unknown. This puts the government at risk because if contractors fail to complete the work, the bonds may not be available to cover losses. This violates the rules under RA 9184.
Why It Matters
Recommended Actions
- Closely monitor the expiration and the required adjustments of the performance security, ensuring that appropriate measures are taken against the contractors or developers who deviate from the prescribed guidelines
- And
Original Audit Finding Excerpt
"Performance bonds of several ongoing construction projects or with extended construction timelines, funded through calamity funds, are either inactive, not renewed or their renewal status cannot be assessed, posing a significant risk to the Authority, and contravening the provisions outlined in the Revised Implementing Rules and Regulations (RIRR) of RA No. 9184."