Warranty Period for Retrofitted Buildings in the Philippines
A comprehensive legal overview
1. What counts as a “retrofitted building”?
In Philippine practice, a retrofitted building is an existing structure that has undergone engineered strengthening, upgrading, or partial reconstruction so it can meet a higher level of safety or functionality (usually seismic, wind, or fire-life-safety). Although the National Building Code of the Philippines (NBCP, Presidential Decree No. 1096, 1977) does not use the term “retrofit,” it covers such works under “Alterations, Repairs, Renovation, Conversion and Addition” (Rule VII, Sec. 3). Consequently, all legal duties and warranties that apply to construction or major repair also apply to retrofit projects.
2. Core sources of warranty and liability
| Source | Key text / rule | How it applies to retrofit projects |
|---|---|---|
| Civil Code Art. 1723 | Engineer/architect/contractor are solidarily liable if the building collapses within 15 years from completion due to defects in (a) plans/specs, (b) ground, (c) construction, or (d) materials. | Once retrofitting is complete, the 15-year “collapse warranty” resets for the portion or components actually altered or strengthened. |
| Civil Code Art. 1715 – 1722 | General contractor’s warranties for workmanship (hidden defects, fitness for intended use, compliance with specs). Prescription: action must be filed within 6 months from discovery, subject to 4-year limit for latent defects. | Latent defects in retrofit materials (e.g., epoxy injections, FRP wraps, post-installed anchors) fall here if they don’t cause total collapse. |
| NBCP + 2004 Revised IRR | §1104.1 (h) requires owners to retain at least one set of plans “for the life of the building.” §118 (Certificate of Occupancy) conditions occupancy on compliance; violations trigger revocation and repairs at owner’s expense. | Local Building Official (LBO) can compel corrective works during the 15-year Article 1723 period if structural retrofit is proven defective. |
| RA 9184 & 2022 Revised IRR (public projects) | Art. IX, §62: 1-year defects liability period plus post-construction structural warranty: 15 years (buildings & bridges), 10 years (roads), 5 years (other structures). Contractor must post Warranty Security (cash, BG, or surety, 5% of final contract price). | LGU-funded or national-agency funded retrofits must meet this security. It is additive to Art. 1723 (statutory) liability. |
| Government Procurement Policy Board (GPPB) Res. No. 08-2006 | Requires Certification of Structural Stability by a licensed civil/structural engineer for retrofit works. | Engineer who certifies stability assumes professional liability under PRC & Art. 1723. |
| RA 4566 (Contractor’s License Law) | §22 empowers the Philippine Contractors Accreditation Board (PCAB) to suspend/revoke license for breach of warranties. | Aggrieved owners may file administrative action against contractors for retrofit defects. |
| Professional Laws (RA 544 – Civil Engineers; RA 9266 – Architects; RA 8495 – Mechanical Engineers, etc.) | Board of Professional Engineers/Architects may sanction professionals for negligence in retrofitting design or supervision. | Disciplinary action is independent of civil/contractual liability. |
| Insurance Code & Standard Professional Indemnity (PI) policies | PI or Contractor’s All-Risk Insurance (CARI) usually cover design-build errors within policy period; sub-limits often match Art. 1723 span. | Owners commonly require PI/CARI as contractual warranty enhancement. |
3. How the statutory 15-year “collapse warranty” works
When does the clock start? Completion means actual physical completion and acceptance (issuance of Certificate of Completion / Occupancy). Partial retrofits (e.g., only the columns) start their own 15-year period for those elements.
Who is solidarily liable?
- Contractor – liable for construction defects and inferior materials.
- Engineer/Architect of record – liable for design & specification defects or failure to supervise.
- Project Owner – liable only if they interfered or ignored professional advice.
Standard of proof Plaintiff must show causal link between defect and collapse. Expert testimony (structural audit) is indispensable.
Prescription of action Supreme Court jurisprudence treats Art. 1723 as creating a substantive 15-year liability period; the general 10-year prescriptive period for written contracts (Art. 1144) runs within that 15-year window, counted from the collapse date, not completion.
4. Hidden (non-collapse) defects
Example: Carbon-fiber wrap delaminates but the building stands. The Civil Code’s six-month notification rule (Art. 1719) applies:
- Owner must notify contractor within 6 months from discovery.
- Action must be filed within 4 years from discovery (Art. 1146 on quasi-delicts).
- If defect threatens safety, the LBO can still invoke NBCP §207 to declare the building dangerous and order abatement, regardless of prescription.
5. Contractual tools that often extend or clarify warranties
| Instrument | Typical term | Notes |
|---|---|---|
| Performance Bond | Until project turnover | Covers non-completion; not a warranty for latent defects. |
| Warranty Security / Retention Money (RA 9184) | 1 year after acceptance or release upon posting security | Can be called on first written demand for any defect noted during DLP. |
| Guaranty Bond (private contracts) | 1-5 years | Negotiated, often equal to 10% contract price; may run concurrently with statutory 15-year warranty. |
| Maintenance Agreement | 1-3 years | Popular for retrofitted hospitals/data centers; bundling maintenance blurs line between repair and warranty. |
| Professional Indemnity Insurance | Claims-made; retroactive clause up to 10-15 years | Policy must be in force when claim is made, not when work was done. |
6. Enforcement mechanisms & remedies
- Civil action for damages (Regional Trial Court).
- Arbitration under Construction Industry Arbitration Commission (CIAC); usually faster and staffed by engineer-arbitrators.
- Administrative complaints with PCAB or PRC Boards.
- Building Official’s abatement order & sealing of occupancy (NBCP §§207-208) for imminent danger, at owner’s expense.
- Criminal liability – rare, but falsification of structural as-built plans (Revised Penal Code Art. 171) or violation of NBCP penal provisions (§212) may be charged.
7. Special situations
| Scenario | Warranty treatment |
|---|---|
| Retrofit funded by Official Development Assistance (ODA) | Follow RA 9184 plus donor’s procurement rules; multilateral banks often require 2-year DLP and 10-year structural warranty. |
| Condominium common areas | Condo Corp. sues on behalf of all unit owners; 15-year Art. 1723 period is common property right. |
| Heritage buildings (RA 10066) | Conservation standards (NCCA/NCCHP) apply; warranties cannot authorize alteration violating heritage protocols. |
| “Performance-based” seismic retrofits (ASCE 41 / NSCP 2020 Chapter 207) | Warranties still measured by collapse prevention, even if design accepts higher damage states. |
8. Good-practice checklist for owners & retrofitting teams
- Secure a Building Permit for Alteration/Repair and a separate Certificate of Occupancy after retrofit.
- Retain all signed and sealed as-built retrofit drawings, structural computations, and material test data for at least 15 years.
- Require a Warranty Security (cash or surety) covering at least the cost of structural works.
- Insert a clause that contractor keeps liability insurance valid for 15 years with discovery tail.
- Schedule periodic structural health monitoring (recommended at years 1, 5, 10, 15). Reports can validate or toll prescription.
9. Take-aways
- • Retrofitting is legally treated as new structural work; thus the Civil Code’s 15-year collapse warranty applies from the retrofit’s completion date.*
- • For public-sector retrofits, RA 9184 adds its own 1-year defects liability period and warranty security—on top of Civil Code obligations.*
- • Hidden, non-structural defects follow shorter Civil Code time frames (6 months to notify; 4 years to sue).*
- • Contract terms, bonds, and insurance can extend, but not curtail, statutory warranties.*
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific cases, consult qualified Philippine counsel and a licensed structural engineer.