4E - Project Completion And Handover Flashcards
How long does the JCLI maintenance contract last?
A minimum of two years sometimes extended if a project is particularly important or complex or if there have been issues that need addressing
What is partial practical completion?
The passing of control and responsibility of a sites completed areas back to the client while there are still works to be done elsewhere. These works elsewhere could be scheduled to be completed at a later time. This may include planting if it has to wait until the next planting season. The contract administrator will issue a certificate of partial completion.
What would you do at practical completion if there were still trees to be planted and work to do?
It is best not to issue the certificate of practical completion unless all work has been done so either resolve the issue, apply for an extension of time, or failing that a certificate can be issued subject to snags or issue a certificate of partial practical completion.
What is retention money and how is it released?
It is a sum of money paid to the contractor at the final completion of the project is an incentive for them to continue carrying out their work and to do it properly. Usually half is released at practical completion and half final completion.
Is the retention fee always 5%?
Usually 2.5% is released at practical completion and 2.5% is released at final completion. It can be other amounts, but it will always be specified in the contract.
What is practical completion?
Practical completion is the stage in construction when the contract administrator confirms the completion of construction works on a project as they were described in the contract (it may only be the majority of works if there is still outstanding minor defects which the contractor may deal with post practical completion).
At this point the contract administrator issues a certificate of practical completion and half of the retention fee normally 2.5% is released to the contractor. Client takes over possession and responsibility of the site from the main contractor and the rectification period and maintenance period begin
What happens at practical completion?
Contract administrator issues a certificate of practical completion.
Works are contractually signed off
Building control signs off
Insurance and responsibility of the site to revert back to the client
Contractor applies for the release of bonds if applicable
Contractor paid half of the retention fee
Rectification and maintenance period begin
What is a certificate of non-completion?
This is a certificate issued if the contractor does not meet the agreed completion date. This triggers liquidated and ascertain damages claims.
What is the rectification period?
Rectification period is there is a period of normally 12 months (it can be longer, you can insist on 24 months for soft works for example) as set out in the contract following site handover and practical completion. defects present in this period must be made at the contractors cost (certificate of making good will be issued by project administrator).
What is the maintenance period?
A period of time (normally 12 to 24 months) as set out in the contract following handover. It runs alongside the rectification period. The contractor maintains the maintenance items as specified and the contractor is paid for their work maintenance periods can extend beyond the rectification period but it’s not good practice.
What are liquidated and ascertained damages?
Liquidated damages also called ascertained damages are those that are obtained by party as a result of the other party breaching the contract. for these to be claimed the contract administrator must have issued a certificate of non-completion. An example of this is if a contractor is building a carpark and doesn’t finish on time this is a breach of contract. The liquidated damages would be the loss in earnings for the client from people not being able to use this car park.
What is a certificate of making good?
This is a certificate issued by the contract administrator to certify that the contractor has made good any defects following practical completion.
What happens in the rectification period?
Contractor must make good any defective works at their own cost
Landscape architect will undertake site inspections and produce a snagging list
Contract administrator issue certificate of making good at the end of the rectification period
