Completion and Certificates Flashcards
What is the date for completion?
The date fixed and stated in the contract particulars
How does the ‘date for completion’ differ from the completion date?
Completion date is the date when the works are complete taking into account changes (like EOT) and is subsequently fixed.
What does it mean when ‘time is at large’?
- There is no fixed completion date
- The contractor must only complete the works in a reasonable time
What is practical completion?
When the employer takes back possession of the works
What is sectional completion?
The completion and handover of the works to the employer in agreed stages
Do the works have to be totally completed before practical / sectional completion is achieved?
- Practical completion is a vague concept
- It is not defined in JCT
- It is reliant on the employer’s agents opinion that the works are complete
- It should not be conditional
- It is common practice for PC to be granted when the works are substantially complete – i.e. there may be minor defects or omissions BUT nothing that would prevent the employer taking occupation
What is the recourse if the contractor disagrees with the employers agent that the works are not completed?
Adjudication
What are the consequences of practical / sectional completion?
- Half of the retention is released
- The Rectification Period begins
- The contractor’s responsibility for insuring the works (if applicable) ends
- The contractor’s liability for liquidated damages ends
- The employer is now responsible for any damages to the works
What is partial possession?
Where the employer requests and the contractor consents to the employer taking possession of the works / part of the works before the date for practical / sectional completion?
What is the difference between partial possession and sectional completion?
Sectional completion is a contractual obligation to hand over the section at the stated date, partial possession relies on the contractor’s consent
What does the employers agent have to do at partial possession?
Issue to a written statement to the contractor showing the relevant part and stating relevant date
What are the consequences of partial possession?
- For the relevant part practical completion is deemed to have occurred on the relevant date
- Therefore the same consequences follow
- In addition, the liquidated damages for the works / that section are reduced by the proportion that the value of the relevant part relates to the contract / section sum
What is the rectification period?
The contractor has an obligation to make good any defects, shrinkages or other faults that arise during this period of time
How long is the defects rectification period?
Six or 12 months, normally 12 months to see all the seasons
How can the employers agent get the contractor to fix the defects that arise during this period?
No later than 14 days after the end of the Rectification Period the architect must issue a written statement to the contractor detailed all of the defects that have arisen and need to be made good