The principal agent (and other agents) must guide the (sub)contractors to achieve the specified quality of workmanship/finish.

The (sub)contractors must advise the principal agent when the works are ready for inspection;

The principal agentagents must inspect the works within the period stated in the [CD] of such notice and issue either:-

Note: Inspections can be time-consuming not to mention the compilation and issue of the list for practical completionafter the event / updating the list later

  • list for practical completion listing all outstanding defects to be rectified for practical completion to be certified; or …
  • Certificate of Practical Completion where all defects have been attended to satisfactorily – to the contractor with a copy to the employer stating the date on which practical completion of the works, or of a sectionthereof, was achieved
  • And a list for completion of items to be rectified and items to be completed before final completion can be certified

At practical completion …

  1. The contractor’s obligations have been substantially fulfilled to the extent that the employer can use the facility for the intended purpose …
  2. The employer may occupy the works from the date of practical completion – BUT the employer can only occupy the works once an ‘Occupation Certificate’ has been issued by the local authority (statutory not contractual obligation);
  3. Possession of the site is relinquished to the employer;
  4. The principal agent can only issue contract instructions to remedy defects – NOT for additional work!
  5. No (further) penalties can be imposed;
  6. The insurance changes from ‘works risk’ to ‘building owners’
  7. Securities are adjusted: the Guarantee for Construction (variable) is reduces from 6 to 4% of the contract sum
  8. The Guarantee for Construction (fixed) reduces form 10 to 3% of the contract sum

See: 6.1P-19.0; 5.0P-24.0; 4.1P-24.0; 6.1N-19.0; 5.0N-24.0; 4.1N-24.0; 5.1M-15.0; 4.0M-9.0; 3.1M-9.0