The issue of the Certificate of Practical Completion by the principal agent to the contractor and the employer is crucial because:

  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 principal agent can not issue further contract instructions except to resolve items on the List for Completion;
  3. 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);
  4. Possession of the site is relinquished to the employer;
  5. The contractor’s lien, if applicable, is relinquished;
  6. The insurance obligations change from ‘works risk’ to ‘building insurance’;
  7. The security provisions change to suit the reduced risk of the parties;
  8. No (further) penalties can be imposed – where the (revised) date for practical completion is not achieved, the contractor may be liable for penalties [CD] at the discretion of the employer in the PBA/MWA

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 Practical Completion – if issued prematurely the employer may have a right to act against the principal agent

See: Definitions; 6.1P-25.13; 5.0P-34.0; 4.1P-34.0; 6.1N-25.13; 5.0N-34.0; 4.1N-34.0; 5.1M-20.7; 4.0P-13-10-17; 3.1P-13.10-17