Asphalt Overlay of CDC Roads - Clark Freeport Zone

Form of Warranty(a) Cash or letter of credit issued byUniversal or Commercial bank:provided, however, that the letterof credit shall be confirmed orauthenticated by a Universal orCommercial bank, if issued by aforeign bank(b) Bank guarantee confirmed byUniversal or Commercial bank:provided, however, that the letterof credit shall be confirmed orauthenticated by a Universal orCommercial bank, if issued by aforeign bank(c) Surety bond callable upon demandissued by GSIS or any surety orinsurance company duly certifiedby the Insurance CommissionMinimum Amount inPercentage (%) of TotalContract PriceFive Percent (5%)Ten Percent (10%)Thirty Percent (30%)12.7. The warranty security shall be stated in Philippine Pesos and shallremain effective for one year from the date of issuance of theCertificate of Final Acceptance by the Procuring Entity, and returnedonly after the lapse of said one year period.12.8. In case of structural defects/failure occurring during the applicablewarranty period provided in GCC Clause 12.5., the Procuring Entityshall undertake the necessary restoration or reconstruction works andshall be entitled to full reimbursement by the parties found to be liablefor expenses incurred therein upon demand, without prejudice to thefiling of appropriate administrative, civil, and/or criminal chargesagainst the responsible persons as well as the forfeiture of thewarranty security posted in favor of the Procuring Entity.12.9. All design and build projects shall have a minimum Defects LiabilityPeriod of one (1) year after contract completion or as provided for inthe contract documents. This is without prejudice, however to theliabilities imposed upon the engineer/architect who drew up the plansand specifications for a building/structures sanctioned under Section1723 of the New Civil Code of the Philippines.52Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads