The stage of completion of the works as certified by the principal agent as being free of defects.

The issue of the Certificate of Final Completion by the principal agent to the contractor and the employer is important because: –

  1. The contractor’s contractual obligations have been fulfilled;
  2. The Contract Works Insurance policy lapses
  3. The contractor’s public liability in relation to the works ceases
  4. The value of the Guarantee for Construction (variable) reduces to 2% of the contract sum until the final payment
  5. All subcontractor’s guarantees, warranties or indemnities are deemed to be ceded to the employer
  6. The balance of the contractor’s latent defects liability period is determined
  7. The final payment certificate can now be issued
  8. The contractor remains responsible for defects to the works for the duration of the Latent Defects Liability Period = five (5) years from the (certified) date of Final Completion – subject to prescription should he be notified of a defect within this period

Sectional completion, if required, must be described in the [CD] at tender stage – the same practical completioncriteria apply per section

Note: the principal agent must ensure that the contractor’s obligations have been fully met before the issue of a Certificate of Final Completion – if issued prematurely the employer may have a right to act against the principal agent

See: 6.1P-21.6-12; 5.0P-26.0; 4.1P- 26.0; 6.1N-21.6-12; 5.0N-26.0; 4.1N-26; 5.1M-20.7; 4.0M-10.0; 3.1M-10.0