Inquiries and applications submitted through SuretyPH are endorsed to the relevant duly licensed insurance company. Approval is subject to verification of submitted information, eligibility requirements, and the underwriting guidelines of that insurance company.

Government Procurement

Warranty Bonds

Post-completion warranty security: what it covers, how long it runs, and how it is computed.

Published Jul 15, 2026

What it covers

A warranty bond, sometimes called a guarantee bond, answers for structural or workmanship defects that appear after completion and acceptance. It replaces performance security once the contract work is accepted.

Warranty periods

Warranty periods are set by the contract. For Philippine infrastructure works they commonly range from one year for smaller works to longer periods for permanent structures, following the applicable procurement rules and the specific contract terms.

Typical basis

Warranty security is commonly a percentage of the total contract price — frequently around 5% to 10% when posted as a surety bond — but the contract or procurement rules govern.

Requirements

Certificate of completion or final acceptance.
Contract and final billing or statement of accomplished work.
Corporate and financial documents on file with the insurer.

Practical notes

Apply before the performance bond is released so there is no gap in security.
Confirm the exact start date of the warranty period; obligees usually count from acceptance, not completion.
Keep the original for filing and retain a copy for your records.

Final terms remain subject to the evaluation of the authorized issuing insurance company.