11 Completion

Question 1

What is practical completion?

Answer 1

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Question 2

What happens at practical completion?

Answer 2

1. Certificate of practical completion is issued
2. Retention reduces (usually by half, or whatever is stated in the Contract Particulars)
3. Contractor’s liability for liquidated damages ends
4. Contractor cannot claim extension of time and loss/expense
5. Defects liability period (aka rectification period) begins
6. Final account is forecasted
7. Employer takes possession of the site
8. Contractor’s insurance cover ceases
9. Contractor not responsible for site security
10. Handover takes place

Question 3

How is practical completion defined in the JCT Standard Form and in the NEC Form?

Answer 3

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Question 4

What guidance is available in relation to defining completion?

Answer 4

RICS ‘Defining completion of construction works’ (2011)

Question 5

What documentation should be in place before practical completion?

Answer 5

1. Health and safety file
2. O&M manuals (including as-built drawings, specifications, maintenance details, operating instructions etc.)
3. Warranties and guarantees from suppliers
4. Testing and commissioning documentation
5. Statutory authority approvals and consents
6. Any other documents referred to in the contract

Question 6

Explain the process of issuing the final certificate under a contract with which you are familiar. How does this differ from other contracts with which you are familiar?

Answer 6

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Question 7

What information would you find on a certificate of practical completion?

Answer 7

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Question 8

What is meant by the term ‘handover’?

Answer 8

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Question 9

What is sectional completion and when would it be used?

Answer 9

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Question 10

How would you go about setting up sectional completion on a project?

Answer 10

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Question 11

How would you include sectional completion within the ?With Contractor?s Design? form?

Answer 11

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Question 12

What are the benefits of using 2 or 3 separate contracts instead of sectional completion and what are the dangers you might encounter?

Answer 12

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Question 13

What is the difference between sectional completion and partial possession?

Answer 13

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Question 14

What are the implications to the client for taking partial possession?

Answer 14

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Question 15

Your client wants to take early possession of a part of the works but there is no sectional completion on the project. Contractually, how can he go about this?

Answer 15

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Question 16

What is a final account?

Answer 16

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Question 17

Who is responsible for preparing the final account and how would this be done?

Answer 17

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Question 18

How long do you have under your contracts to complete the final account?

Answer 18

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Question 19

What courses of action are available to the parties if you cannot agree a final account with the contractor?

Answer 19

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Question 20

What is the rectification period?

Answer 20

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Question 21

What is a defect?

Answer 21

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Question 22

What is the difference between a latent defect and a patent defect?

Answer 22

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Question 23

What information would you find on a certificate of making good?

Answer 23

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Question 24

What happens at the end of the rectification period?

Answer 24

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Question 25

Your client has reported a building defect to you 9 months after practical completion - what should you do?

Answer 25

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