Project Completion Flashcards
What is the timeline for when the certificates are issued?
- Practical Completion
- Recitification Period (6-12 motnhs)
- Schedule of defects (14 days after Rectification Period)
- Certificate of Making Good
- Final Certificate (Final payment up to 2 months after)
When will the A/CA issue the Practical Completion certificate?
Once Practical Completion of works (or section) have been completed and the contractor has complied with his obligations to issue all As Built drawings, O&M’s, the Health & Safety File and all other requirements under the CDM 2015 Regulations
What is Practical Completion Certificate?
Practical Completion: A contractual obligation to hand over all the works as per the Completion Date stated in the contract particulars.
As of this date all works associated with the contract except snags which are identified and recorded are deemed to be complete.
What mechanisms are triggered following the issue of the Practical Completion Certificate?
- the rectification period begins.
- half retention is released.
- contractor is no longer liable for liquidated damages.
- contractor insurance finishes.
- employer takes possession of the site and transfer of insurances occur.
- Warranties start (for kit install)
When is a Practical Completion Certificate issued?
Practical Completion Certificate is issued after Practical Completion (PC) of the Works stipulated in Contract Particulars. It will trigger the Rectification Period which typically lasts for 6 (by default) or 12 months from the PC date.
What is the Rectification period?
Used to be called the Defects and Liability Period
The rectification period is a mechanism that allows the Contractor to return to site after Practical Completion to fix any patent defects (discoverable by inspection) within a reasonable time.
CA will instruct Contractor to Make Good defects
What happens when the Rectification period ends?
When the Rectification Period has ended, the CA prepares and issues a list of all outstanding defects (Schedule of Defects) as an instruction to the Contractor no later than 14 days after the rectification period expiry date. All defects rectification will be at the Contractor’s cost.
What happens if the Contractor does not complete the works or section by the completion date?
The A/CA shall issue a Non-Completion Certificate which enable the employer to claim/deduct for liquidated damages.
What is a Non- Completion Certificate?
A non completion certificate is issued if the Contractor fails to complete the works (or a Section) by the Completion Date. This will incur liquidated damages as stipulated in the Contract Particulars
What happens if a new Completion Date is set after the issue of the non-completion certificate?
It will cancel out the certificate
What is Sectional Completion Certificate?
- Sectional Completion: A contractual obligation to hand over a section of the works at a stated date that is identified in the contract particulars.
- They are pre-determined parts of the building to be handed over early.
- Sectional Completion Certificate is issued after Practical Completion (PC) of a Section stipulated in the Contract Particulars. Same principles as Practical Completion
What must be in place for Sectional Completion to be implemented?
For sectional completion is to be used, it must be set up in advance with each section having its own start/completion date stated in the contract, rate of liquidated damages and the same mechanisms are triggered when Practical Completion is achieved per section.
When would partial possession be used?
Partial possession is often used where the employer did not envisage taking over part of the works at the start of the project.
It can be requested by the employer at any stage in the progress of works but the Contractor’s consent is needed.
What is Partial Possession?
Partial Possession: The employer can only take partial possession of the site or parts of the site if the contractor provides consent – the date is not set in the contract particulars.
They are previously undefined areas to be handed over with the contractors consent if they are completed earlier than planned
What is Early Use?
Early Use: The Employer may take up use or occupation of the site or sections of the site before Practical (or Sectional) Completion Certificate are issued but ONLY with the Contractor’s consent. (right is stated in contract particulars)
