Expired or Inactive Performance Bonds
National Housing Authority · 2024
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 agency has construction projects where the contractors' performance bonds (insurance that protects the agency if the contractor fails) have lapsed or are not valid. This means the agency has no financial protection if the contractors do not finish the work.
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."