14 Handover

Question 0

Steps to consider when approaching handover?

Answer 0

Inspections Pre-occupancy
Advise owner on handover responsibilities
Obtain occupancy permit
Issue PC certificate 
Do Defects inspections
Apply Liquidated Damages (if applicable)

Question 1

What happens when you are approaching Completion?

Answer 1

Builder to notify architect two weeks before practical completion
  Architect does site inspection to determine whether near PC or not, notifies builder either:
     Not at or near PC (no list of works still to be done needed)
     Not at but near PC (list of works to be done before PC)
     At PC (issue certificate of PC - which may have conditions)

Builder to provide defects list (as part of preparation for PC), ‘as cons’ service drawings, schedules, maintenance and operating manuals, warranties on all equipment
Must all be commissioned and in operation

Question 2

What Pre-occupancy inspections are required to take place?

Answer 2

Arrange for pre-occupancy inspections/certifications as necessary
(DFES, BCA compliance, utility services compliance, OH&S (principals), Health Department, AQIS, Greenstar/Energy audits

Issue lists of non-compliant items to Contractor for rectifications
Consultants to provide CDCs to Certifier (with information from subconsultants)
Set date for completion

Question 3

What advice should you give to the owner about handover responsibilities?

Answer 3

Transfer of responsibility for insurance of works from contractor to owner
Prepare to return half of bank guarantee / cash retention
If owner moves in before PC, PC is deemed to have been reached (for the area the owner occupies, maybe whole site)
Advise client of issues. Recommend they do not,

Question 4

What do you need to consider before issuing PC Certificate?

Answer 4

Check that contractor has provided all required deliverables and completed all defects
Check that Certificate of Occupancy has been obtained

Question 5

What is the process for Defects Inspections?

Answer 5

Conduct Defects inspections at PC
Correlate all consultants defects lists in a schedule and issue to contractor
When contractor advises defects are fixed, re-inspect and sign off or update schedule

Question 6

What is Practical Completion and what does the Architect need to do?

Answer 6

“State of being substantially complete and fit for use/occupation by the owner”
Therefore: all defects are minor and do not prevent works from being used for their intended purpose, all commissioning tests for plant and equipment have been carried out, any approvals required for occupation have been obtained
Architect issues Certification of Practical Completion to principal and contractor
Architect instructs client to release half of cash retention/bank guarantee
If builder will not hand over until he receives all payments - breach of contract (contact lawyer)

Question 7

When do Liquidated Damages apply? How much are they?

Answer 7

If date for PC is not reached and there are no EOTs granted, then LDs may apply
Must be an actual loss for LDs to apply (rent, income from operation, wages, etc)
Amount specified in annexure of contract - calculation at start of contract as reasonable estimation of loss

Question 8

What is an Occupancy Permit (BA09) and what is required?

Answer 8

Must be obtained before building can be occupied
Class 1a and 10 buildings do not require
Builder submits notification of completion to permit authority
Certifier inspects building, receives CDCs from service consultants, provides application and CCC (cert of construction compliance) to council, with evidence of any authority approvals required and any notifications given
Allow 10 days for council to process
Certificate issued by council