12/9/2014

PracticalcompletionDesigningBuildingsWiki

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Practicalcompletion

Beneficialoccupation.
Certificateofmakinggooddefects.

Thecontractadministratorcertifiespracticalcompletionwhenalltheworksdescribedinthe
contracthavebeencarriedout.Practicalcompletionisreferredtoas'substantialcompletion'
onsomeformsofcontract.
Certifyingpracticalcompletionhastheeffectof:
Releasinghalfoftheretention(anamountretainedfrompaymentsduetothecontractorto
ensurethattheycompletetheworks).
Endingthecontractor'sliabilityforliquidateddamages(damagesthatbecomepayableto
theclientintheeventthatthereisabreachofcontractbythecontractorgenerallyby
failingtocompletetheworksbythecompletiondate).
Signifyingthebeginningofthedefectsliabilityperiod.

Certificateofnoncompletion.
Completiondate.
Defectsliabilityperiod.
Extensionoftime.
Featuredarticlesandnews
Occupation.
Migrationstrategy.
Autumnstatement
Possession.
Handovertoclient.
Liquidateddamages.

Documentationthatshouldbeissuedtotheclientoncertificationofpracticalcompletionmay
include:
Adraftbuildingowner'smanual.
Abuildinguser'sguide.
Thehealthandsafetyfile.
Thebuildinglogbook.
Aconstructionstagereport.

Lossandexpense.
Partialpossession.
Retention.
Sectionalcompletion.
AquicksummaryofwhattheAutumnStatement
meansfortheconstructionindustry.
Scheduleofdefects.
Snagging.

Oncethecertificateofpracticalcompletionhasbeenissued,theclienttakespossessionof
theworksforoccupation.

Softlandings.
Futureofelectricityindomesticbuildings
Timeatlarge.

Thereisnoabsolutedefinitionofpracticalcompletion,andcaselawisverycomplex.There
issomedebateaboutwhenpracticalcompletioncanbecertifiedandwhetheritcanbe
certifiedwherethereareveryminor(deminimis)items'notaffectingbeneficialoccupancy'
thatremainincomplete.
Itisimportanttonotethatthedefectsliabilityperiod,whichfollowscertificationofpractical
completion,isnotachancetocorrectproblemsapparentatpracticalcompletion,itisthe
periodduringwhichthecontractormayberecalledtorectifydefectswhichappear.Ifthere
aredefectsapparentbeforepracticalcompletion,thentheseshouldberectifiedbeforea
certificateofpracticalcompletionisissued.
Thiscanputthecontractadministratorinadifficultposition,whereboththecontractorand
theclientarekeentoissuethecertificate(sothatthebuildingcanbehandedover)andyet
defects(morethanademinimis)areapparentintheworks.Issuingthecertificatehowever
couldrenderthecontractadministratorliableforproblemsthatthiscausesforexampleinthe
calculationofliquidateddamages,thepositioninrelationtoperformancebondsandthethe
releaseofretentionwhenitisnotcertainthattheworkswillbecompleted.
Ifthecontractadministratorispressuredtocertifypracticalcompletioneventhoughthe
worksarenotcomplete,theymightconsiderinformingtheclientinwritingofthepotential
problemsofdoingso,obtainingwrittenconsentfromtheclienttocertifypracticalcompletion
andobtainingagreementfromthecontractorthattheywillcompletetheworksandrectifyany
defects.Ifthecontractadministratorisnotconfidentaboutthepotentialproblems,theymay
advisetheclienttoseeklegaladvice.

BREpaperpublishedinresponsetopotentially
significantchangesintheproductionand
consumptionofelectricityindomesticbuildings.

Imagesearch
(http://www.designingbuildings.co.uk/wiki/Special:NewFiles)

Onconstructionmanagementcontracts,aseparatecertificateofpracticalcompletionmust
beissuedforeachtradecontract.Oncealltradecontracts(oralltradecontractsfora
particularsectionoftheworks)havebeenissued,theconstructionmanagerissuesa

http://www.designingbuildings.co.uk/wiki/Practical_completion

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12/9/2014

PracticalcompletionDesigningBuildingsWiki

certificateorprojectcompletion(orsectionalcompletion).Thesameistrueonmanagement
contracts,whereeachworkscontractmustbecertifiedindividually.
Practicalcompletionisnotatermrecognisedinsomerecentlydevelopedcontractssuchas
PPC2000andotherpartneringcontractswhichsimplyreferto'completion'.Thiscanputthe
contractadministratorinadifficultpositionastowhentheprojectbecomes'useable'bythe
client.Iftheprojectreachesastagewhentheintendedusebytheclient(eitherimmediate
use,suchasinstallingfurnitureorfittingout,oractualoccupationbytheendusers)is
possible,safelyandwithoutaffectingwarranties,thentheprojectmaybedeemed'complete'.
Thesizeandextentofthelistofoutstandingworksanddefectsrequiringrectificationwillbe
themeasureonwhichthecontractadministratorjudgeswhethercompletionhasactually
beenachieved.
Ifpracticalcompletionisnotcertifiedbythemostrecentlyagreedcompletiondate,thenthe
contractormaybeliabletopayliquidatedandascertaineddamagestotheclient.Theseare
predetermineddamagessetatthetimethatthecontractisenteredinto,basedona
calculationoftheactuallossthattheclientislikelytoincurifthecontractorfailstomeetthe
completiondate.Somecontractsrequirethatacertificateofnoncompletionisissuedasa
prerequisitetodeductingliquidatedandascertaineddamages.
NBSectionalcompletionreferstoaprovisionwithinconstructioncontractsallowingdifferent
completiondatesfordifferentsectionsoftheworks.Thisiscommononlargeprojectsthat
arecompletedinsections,allowingtheclienttotakepossessionofthecompletedparts
whilstconstructioncontinuesonothers.Sectionalcompletiondiffersfrompartialpossession
inthatitispreplannedanddefinedinthecontractdocuments.

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RelatedarticlesonDesigningBuildingsWiki
Beneficialoccupation.
Certificateofmakinggooddefects.
Certificateofnoncompletion.
Completiondate.
Defectsliabilityperiod.
Extensionoftime.
Occupation.
Migrationstrategy.
Possession.
Handovertoclient.
Liquidateddamages.
Lossandexpense.
Partialpossession.
Retention.
Sectionalcompletion.
Scheduleofdefects.
Snagging.
Softlandings.
Timeatlarge.

BIMarticles
Therearenowmorethan50articlesaboutBIM
availableonDesigningBuildingsWiki.

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