Contract Bonds
Warranty Bond
Defects liability security covering the warranty period after completion.
Overview
A warranty bond answers for structural or workmanship defects discovered during the warranty period following final acceptance.
For public works, the warranty period and acceptable form of security are set by the procuring entity and the contract.
Purpose
- Secures rectification of defects after turnover.
- Supports release of retention money.
- Provides recourse without litigation.
Typical uses
- Completed infrastructure and building works
- Equipment with warranty obligations
- Fit-out and specialty trade turnovers
Who normally requires it
- Contractors completing works
- Suppliers of warranted equipment
- Developers turning over units
Parties involved
- Principal — the contractor or supplier applying for the bond
- Obligee — the project owner or procuring entity protected by the bond
- Surety — the authorized Philippine insurance company that issues the bond
Typical documentary requirements
- Accomplished bond application form with obligee and transaction details
- SEC or DTI registration, Articles of Incorporation, or business permit
- BIR Certificate of Registration and latest filed tax return
- Audited financial statements for the last two to three years
- Valid government IDs of signatories and board or partnership authority
- Certificate of completion or final acceptance
- Statement of the required warranty period
Final requirements depend on the obligee and the issuing insurance company. See the full requirements guide.
Typical application process
Step 1
Submit the application
Open an application in your SuretyPH portal and enter the obligee, transaction, and bond details.
Step 2
Upload requirements
Follow the guided checklist and upload each document securely to your application file.
Step 3
Pre-assessment
We review the file for completeness and endorse it to an authorized issuing insurance company.
Step 4
Quotation
The insurer evaluates the submission and issues a quotation covering premium, fees, and any collateral requirement.
Step 5
Payment and issuance
Once the quotation is accepted and the premium is settled, the insurer issues the bond for release or delivery.
Risks typically covered
- Structural defects appearing after acceptance
- Workmanship defects within the warranty period
- Cost of repair or replacement
Frequently asked questions
How long is it issued for?
It follows the contractual warranty or defects liability period, commonly one year for buildings and longer for certain structures.
Can it replace retention money?
Only if the obligee accepts a surety bond in lieu of retention. Check the contract terms.
More answers on premiums, collateral, and timelines are in the general FAQs.
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SuretyPH is a digital information and lead-generation platform owned and operated by McMatthise Global Group Corporation. It does not independently underwrite, approve, bind, issue, or guarantee any insurance policy or surety bond. Evaluation, underwriting, premiums, approval, and issuance remain the responsibility of the relevant duly licensed insurance company.