WHAT IS THE IMPORTANCE OF THE CERTIFICATE OF PRACTICAL COMPLETION?

 Where the conditions of contract agreement provide for the issuing of a certificate of practical completion by the Architect, Principal Agent or Engineer, Contractors should take great care to ensure that the certificate is issued properly and timeously by the person required to issue it.

Certificates of practical completion in all model forms of construction contracts are issued to signify that the work has been completed for all practical purposes, albeit that there may be some small items of work in progress, and that the Employer can now take possession and use the works for their intended purpose.

But the importance of the issuing of a certificate of practical completion extends beyond the mere indication that the works have reached a certain state of completion.

It is important to the Contractor to have this certificate issued timeously and properly because it normally triggers or records:

1. The transfer of the responsibility for the care of the works from the Contractor to the Employer;

2. The commencement of the patent defects liability period;

3. The date when the contract works insurance cover comes to an end;

4. The Contractor's entitlement to have his performance guarantee/surety returned to him, or to have the amount of the construction guarantee reduced;

5. The Contractor's entitlement to the payment of the first moiety of retention monies (where retention in provided for).

6. The beginning of the period of time allowed for the preparation of the final account;

7. The end of any period of delay for which the Contractor may be paying penalties.

The late of non-issue of certificates of practical completion is therefore entirely to the detriment of the Contractor and contractors should pursue their proper issue with vigour.

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