Completion Flashcards
In a normal, non-construction contract, what is meant by completion?
All obligations would be met, consistant to the requirements
What is a practicle completin certificate?
A certificate issued to evidence practicle completion
Can a practicle completion certificate be retracted?
No
What is practicle completion?
where the practical completion certificate (PCC) is issued. All obligations under the contract are seen to be done at this point.
Seen - an imortant distinction
what is the defects liability period?
A period of time (usually 6-12 months) after PC and is the end of the time whereby the contractor must come back and fix and latent defects.
What is meant by latent defects?
Defects that arise or become apparent after PCC
What key things happen when the PCC is issued?
- Possession of site will transfer back to client
- Responsibility to insure/protect site goes on to the client
- Casement of liability for delay damages or LD’s
- Passes risk of damage to site on to the client
- Commencement of defects liability period
- Trigger milestone payments
- Release of (some) retention monies
- Can effect third party agreements such as performance securities
When is the client required to take possession or admit PC under JCT?
When the work is “Finished” and no more patent defects can be identified
This is hard, most clients resort to finished-enough
What is the test for completion?
The pre-described completion criteria test
Often unbiased opinion of contract administrator
What happens if a contractor disputes a client not marking a project as complete when they beleive it is?
Dispute resolution protocol followed - adjudication may be only way out
Can PCC be issued if there are still patent defects?
That is left to the descretion of the CA or client, they may prioritise possession over defects being fixed and may deffer until defects liability period
Client and contractor should agree this if large defects remain
Can the client use the site before PCC
In the absence of specific provisions in the contract the client cannot take possession of any part of the works without the express consent of the contractor.
If a conditions precident limits a CA’s ability to issue PC, what might an example of a condition be?
completion won’t be certified until all H&S information has been handed over
Other than the completion of the building works, what else may the CA be looking for to issue PCC
- Certificates
- Equipment warranties
- Opperation and maintenece manuals
- H&S information
- Collateral warranties
etc.
Is building control sign off required for PCC
No, though if BC wont sign off, its a good indication PCC shouldnt.
BC wont look for asthetical divergents.
