4E: Project Completion and Handover Flashcards
How long does the JCLI maintenance contract last?
Minimum 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?
Partial Practical Completion is the passing of control and responsibility of a site’s completed areas back to the Client while there are still works to be done in other areas of the site scheduled to be completed at a later time.
This may include things like 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/still work to do?
It is best not to issue the certificate of practical completion unless all of the work has been done, so either try and resolve the issue, apply for an extension of time, or failing that a certificate of practical completion can be issued subject to snags, or issuing of a partial practical completion certificate.
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, as an incentive for them to continue carrying out their work and do their work properly. Usually half is released at practical completion and half at final completion.
Is the retention fee always 5%?
Usually 5% - 2.5% released at practical completion and 2.5% at final completion. It can be other amounts - but will always have to be specified in the contract.
What is practical completion?
It is the stage in construction when the Contract Administrator confirms the completion of construction works of a project, as they were described in the contract. (it may only be the majority of works, if there are still outstanding minor defects which the contractor will deal with post-practical completion)
At this point, the contract administrator issues the certificate of practical completion, half of the retention fee (normally 2.5%) is released to the contractor, and the client takes over possession and responsibility of the site from the main contractor. The rectification period and maintenance period then begins.
What happens at practical completion?
- Contract administrator issues certificate of practical completion
- works are contractually signed off
- building control sign-off
- insurance and responsibility of the site reverts back to the client
- contractor applies for release of bond (if applicable)
- contractor paid half of the retention fee (usually 2.5% of total fee)
- Rectification and maintenance periods begin
What is a certificate of non-completion?
- this is a certificate issued if the contractor does not meet the agreed completion date
- triggers liquidated and ascertained damages claims
What is the rectification period?
It is a period of time (normally 12 months) as set out in the contract following site handover and practical completion. Defects present in this period must be “made good” at the contractor’s cost (certificate of making good will be issued by project administrator).
What is the maintenance period?
A period of time (normally 12-24 months) as set out in contract following handover – runs alongside the rectification period. The Contractor maintains the maintenance items as specified and the contractor is paid for their work. Maintenance period can extend beyond the rectification period but not good practise.
What are liquidated and ascertained damages?
Liquidated damages, also called ascertained damages, are damages obtained by a 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 car park, and doesn’t finish on time (ie a breach of contract) - the liquidated damages would be the loss in earnings for the client from people not being able to use the car park.
What is a certificate of making good?
It 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 (patent defects)
- Landscape architect will undertake site inspections and produce snagging list
- Contract administrator will issue certificate of making good at the end of the rectification period.
