The Bacolod Sangguniang Panlungsod passed a resolution Wednesday interposing no objection to the request of the mayor for the release of the retention money of Hilmarc’s Construction Corp. provided that the contractor conforms with the provisions of the contract it had entered into with the city.

The resolution was proposed by Councilor Dindo Ramos, SP chairman of the Committee on Laws, Ordinances and Good Government.

Mayor Evelio Leonardia had written the SP in Feb. 26, 2008 informing the body of the request of HCC, the contractor of the new government center, for the release of the retention money withheld from its previous billings amounting to P19,747,856.05.

For the release of the retention money, HCC submitted a Surety Bond callable on demand issued by Prudential Guarantee, also for the same amount, he said. The Surety Bond submitted by HCC will expire on Jan. 25, 2009, he added.

The Implementing Rules and Regulations of R.A. No. 1984 entitled “Contract Implementation Guidelines for the Procurements of Infrastructure Projects,” state that progress payments are subject to retention of 10 percent, referred to as the “retention money.”

Such retention shall be based on the total amount due to the contractor prior to any deduction and shall be retained from every progress payment until 50 percent of the value of works, as determined by the procuring entity, is completed.

The new government center is more than 88 percent complete as of April 2008.*CGS

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