PRACTICAL COMPLETION

The stage of completion certified by the principal agent where the works or a section thereof has been completed free of patent defects and can be used for the intended purpose [CD] other than minor defects noted in the list for completion

PRACTICAL COMPLETION

Applies when the employer takes possession of the site/works.

Note: Access to the site/works by a direct contractor in terms of a contract instruction issued by the principal agentto the contractor does not constitute ‘practical completion’

At interim completion: subcontractor hands over as built drawings and warranties for n/s subcontract workscompleted;

At practical completion:-

1. Principal agent compiles ‘operating manual’ to forward to the employer;
2. Occupation certificate = employer’s (agents) responsibility;
3. Possession of the site is relinquished to the employer;
4. Contract Works Insurance policy reduces until final completion;
5. Employer’s building owner’s insurance commences;
6. Public Liability Insurance remains in force until final completion;
7. No further contract instructions issued except to rectify defects;
8. Contractor’s liability for penalties ceases;
9. Guarantee for Construction (fixed) expires, work certified to 97.5%;
10. Guarantee for Construction (variable)–reduced to 4% contract;
11. Principal agent commences and completes the final account within ninety (90) calendar days of the date for practical completion;

Note: As Built Drawings in compliance with the Construction Regulations: (where due to changes instructed by the employer, covered by additional fees)

See: 6.1P-19.0; 5.0P-24.0; 5.0M-15.0; 4.0M-9.0