CHOP 6.7 - TAKE-OVER PROCEDURES, COMMISSIONING, AND POST-OCCUPANCY EVALUATION

Question 1

Certificate

Answer 1

A document attesting to the truth of a fact; in construction. A certificate is prepared by a professional, either an architect or an engineer.

Question 2

Certificate of Substantial Performance

Answer 2

A certificate issued under the appropriate lien legislation attesting that the contract between the owner and the contractor is substantially complete.

Question 3

Guaranty

Answer 3

A three-party agreement in which the third party (such as a surety) guarantees the performance of an obligation to the second party (such as an owner) in the event of default of the first party (such as a contractor)( CCDC).

Question 4

Holdback

Answer 4

A percentage of the monetary amount payable under a (construction) contract, which is held as security for a certain period. The percentage and period are based on the provincial lien legislation.

Question 5

Lien

Answer 5

A legal claim on real property to satisfy a debt owed to the lien claimant by the property owner. This claim can carry the right to sell the property upon default.

Question 6

Maintenance

Answer 6

The act of keeping a building system, process or property in proper and efficient working condition.

Question 7

Post-occupancy Evaluation

Answer 7

An assessment of the performance of a building after the building has been occupied. The evaluation may address one or more different aspects of building performance.

Question 8

Ready-for-Takeover

Answer 8

A term adopted by the Canadian Construction Document Committee (CCDC), used to describe a set of contractual and regulatory requirements that must be satisfied prior to achieving a financial milestone for the release of the project close-out payment(s).

Question 9

Warranty

Answer 9

A two-party agreement which provides an assurance by a builder or a seller of goods (such as a contractor) to a purchaser (such as an owner) that the warrantor will assume stipulated responsibilities for correction of defects in the goods within a stated period of time (CCDC).

Question 10

Introduction to “Take-over Procedures, Commissioning, and Post-occupancy Evaluation”

Answer 10

In a project, even though the architect may have provided great design and contract administration services, poor takeover and commissioning services may be all a client remembers about the project, leaving the architect with an overall poor review.

Takeover procedures are a normal part of the architect’s basic services that close the contract administration phase. The takeover deliverables should be clearly specified in the general requirements section of specifications listing the owner’s requirements for record documents, demonstration and training, and operations and maintenance documentation.

After takeover, the architect is responsible for reviewing defects and deficiencies during the warranty period and for notifying the contractor of items to be corrected.

Commissioning may commence at the beginning of a project and may continue until occupancy by the owner. Takeover, by contrast, starts when a project nears construction completion.

With the increasing integration of green building rating systems into projects, post-occupancy evaluation may be a requirement of certifications systems.

Question 11

Take Over Procedures

Answer 11

Ready for Takeover and Substantial Performance:

Ready-for-takeover may vary from contract to contract; however, CCDC has established a list of factors that constitute the ready-for-takeover state. From CCDC 2 2020,

12.1.1 The prerequisites to attaining Ready-for-Takeover of the Work are limited to the following:

1) The Consultant has certified or verified the Substantial Performance of the Work.

2)Evidence of compliance with the requirements for occupancy or occupancy permit as prescribed by the authorities having jurisdiction.

3) Final cleaning and waste removal at the time of applying for Ready-for-Takeover, as required by the Contract Documents.

4) The delivery to the Owner of such operations and maintenance documents reasonably necessary for immediate operation and maintenance, as required by the Contract Documents.

5) Make available a copy of the as-built drawings completed to date on site.

6) Startup, testing required for immediate occupancy, as required by the Contract Documents.

7) Ability to secure access to the Work has been provided to the Owner, if required by the Contract Documents.

8) Demonstration and training, as required by the Contract Documents, is scheduled by the Contractor acting reasonably.

Generally, for projects that involve new buildings or renovation of unoccupied space, a project is deemed substantially complete when both the following criteria are met:

1) The building is ready for its intended use and, if applicable, an occupancy permit is issued.

2) The balance of payment to the contractor is at a level below the threshold indicating that the work has been substantially performed as stated in provincial and territorial construction lien legislation.

For the purposes of release of a statutory holdback, it is possible to waive the requirements associated with the certificate of substantial performance and to proceed directly to a statement of deemed total completion (as defined in the lien legislation). In this case, the warranty period commences on the date of total completion. This is often used on small projects when the time between substantial performance and total completion is short.

Question 12

Final Certificate for Payment

Answer 12

Once the architect is satisfied that all deficiencies have been corrected and that all work under the contract has been completed, the contractor can apply for payment for the outstanding amount. The final completion or correction of deficiencies can be frustrating for the architect for the following reasons:

1) progress towards final completion of outstanding deficiencies seems to be very slow.

2) the architect’s authority to certify payments and thus influence the contractor to work expeditiously decreases once the major part of the payment has been released.

3) many contractors tend to lose interest in the project when there is no longer a significant financial incentive.

If the contractor is efficient in correcting all the deficiencies, the date of this certificate may precede the date for release of final holdback.

Question 13

Certification for Release of Holdback

Answer 13

The architect prepares a certificate authorizing payment of the amount of holdback which has accrued to the date of substantial performance. The certificate should be dated for payment one day after the termination of the lien claim period. When issuing the release of the holdback certificate, the architect should advise the owner to obtain legal counsel to ensure that no liens have been registered or notices of liens have been received.

The holdback monies are a trust fund. This fund cannot be used to enforce the performance of the contractor nor to ensure that deficiencies are corrected. Certification of payment for known deficiencies should never be made until the performance of the work is acceptable.

Question 14

Letters of Assurance

Answer 14

In some jurisdictions, authorities having jurisdiction require a letter of assurance, letter of undertaking or commitment certificate from the architect or registered professional that a building has been constructed in general compliance with the building code, applicable regulations, and the construction documents accepted for building permit purposes.

Question 15

Final Submissions

Answer 15

Prior to occupancy of the building by the owner, the contractor must satisfy the conditions of ready-for-takeover and forward required documentation to the architect for review. This may include:

1) operations instructions and maintenance manuals.
2) a complete set of keys
3) record documents, which may include shop drawings in the appropriate format as specified in the contract documents.
4) maintenance materials and spare parts.
5) copies of warranties and bonds for each system along with dates for warranty periods.
6) certification of the operation of various systems.

It is important for the architect and the engineers to scrutinize these items carefully because they may be inaccurate or incomplete on first submission and require re-submission before they are acceptable.

The final submission may be in two stages:

1) Those items required for the proper operation of the premises for occupancy and, therefore, for certification of substantial performance.

2) Those items necessary to complete the contract.

Ultimately, all actions and submission of ready-for-takeover must be satisfied by the contractor.

It is also at this point of a project when the architect benefits from assembling a file for their own future reference

Question 16

Occupancy

Answer 16

Building occupancy typically occurs because of one of three situations:

1) Unconditional occupancy: Unconditional occupancy occurs when the scope of work associated with a building permit and especially the life and safety portion of the building code are compliant, complete, and accepted.

2) Conditional Occupancy: Conditional occupancy occurs when a building, or portion thereof, may be considered safe but a portion of the project is incomplete with respect to the construction documents submitted for the building permit, or with respect to the permit conditions or substantial building code compliance.

3) Phased (or Partial) Occupancy: Phased (or partial) occupancy occurs when a discrete, or stand-alone, portion of a building is complete with respect to the scope of work shown (for that portion) on the construction documents submitted for the building permit, or with respect to the permit conditions or substantial building code compliance.

Question 16

Commissioning

Answer 16

Commissioning includes a range of activities undertaken to transform the design of a facility into a fully integrated and operating system. It is a process of quality assurance which:

1) begins with the definition of the “design intent” and ends with the delivery of a building.
2) confirms the contractor’s implementation of the architect’s design as defined in the contract documents.
3) confirms the ability of the architect’s design to satisfy the client’s defined requirements.
4) addresses any shortcomings.

The data obtained from commissioning can also be used as a baseline for future evaluations of the building’s systems and performance.

Question 17

Pre-occupancy Services

Answer 17

Commissioning may begin at the pre-design stage of a project with an interpretation of the client’s expectations in the functional program.

The architect’s responsibility is to communicate the design intent to the building constructor and, ultimately, to the building operator. Commissioning is a quality assurance tool to achieve this.

Because the contractor is usually a late arrival to the project team, an explanation of the verification and testing procedures by the commissioning agent should appear in the bid documents.

Question 17

Component Verification

Answer 17

The use of performance specifications often results in the supply of components with service characteristics or operational outputs which require minor revisions to the design. The component verification process is an excellent tool to highlight these variances.

In the case of material substitutions, variances from the specifications must include a written statement of recommendation for acceptance by the architect and the acceptance by the owner

Question 18

Systems Verification

Answer 18

The process of systems verification begins after all components within the system are accepted and deficiencies are corrected. The contractor’s schedule for the timing, sequencing, and proving of systems will require regular commissioning meetings to ensure that all parties are available to:

1) Verify that all prerequisites to testing are in place.
2) review test procedures and acceptable results.
3) witness tests.

Failure to verify can seriously affect the construction schedule and can result in delays and claims.

After sign-off by the contractor, the consultants will then certify their recommendation of acceptance using standard verification sheets. Variances from the design identified during systems testing will require investigation and reporting by the architect and the engineers. Testing after occupancy can release the contractor from continuous attendance on the site.

Question 19

Warranty Review

Answer 19

The architect will be responsible for reviewing defects and deficiencies during the warranty period on behalf of the client and for notifying the contractor of items requiring attention. Prior to the anniversary date of the one-year warranty, the architect should arrange a review of the project. The review should include:

1) The architect
2) the engineer
3) the client
4) the contractor
5) The commissioning agent

A summary of problems and construction deficiencies should be compiled. The architect verifies the accuracy of the list and forwards it to the contractor, before the contractor’s obligations under the contract expire.

If the contractor fails to rectify a warranty item in a reasonable time, the architect may review the client’s rights under the bonding and insurance provisions in the contract.

The architect must document any adjustment or revision to these systems as well as modify the project database and the owner’s appropriate operating and maintenance manuals.

The architect and the contractor may be called upon to account for deficiencies uncovered during post-occupancy, either because of defective workmanship or the original design.

Question 20

Post-occupancy Evaluations

Answer 20

Post-occupancy evaluations:

1) review a building’s performance
2) assess how well the building matches users’ needs
3) identify ways to improve building design, performance and fitness for purpose
4) can be carried out at six- or 12-month intervals