Scribd
Upload
125 views

CM 5

The document discusses various aspects of partial possession, practical completion, and liquidated damages related to construction contracts. It addresses questions like what agreements are needed for partial possession, how it impacts retention amounts and defect liability periods, and the criteria for an architect to certify practical completion. It also covers what notices and certificates must be issued if a contractor fails to complete on time, and the preconditions that must be met before damages can be deducted.

Uploaded by

Ponian Piano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
125 views

CM 5

The document discusses various aspects of partial possession, practical completion, and liquidated damages related to construction contracts. It addresses questions like what agreements are needed for partial possession, how it impacts retention amounts and defect liability periods, and the criteria for an architect to certify practical completion. It also covers what notices and certificates must be issued if a contractor fails to complete on time, and the preconditions that must be met before damages can be deducted.

Uploaded by

Ponian Piano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

1.

Kamonrat Tanaboon 59120500001


2.Nahathai Boontae 59120500019
3.Natasha belle Garcia 59120500035
4.Piangphet Saengtuangkit 59120500051
5.Ithida Saravitee 59120500081
Reference

Construction Contracts: Questions


and Answers
By David Chappell
Partial possession

Employer sometime required to take possession parts of the Works ahead of Practical Completion
of the whole Works. Provision in the contract by mean of clause is provided.

• This partial possession requires agreement between who?


- The employer and contractor.
• Can the contractor reserved the rights to withheld?
- Yes because employer need a permission and Certificate of Practical Completion from
contractors
• What is the status of the part of the Works that will be occupied by the employer?
- When the construction almost complete, employer can ask the contractor to take possession
of the part of the building.
• What will be the impact to the defect liability period for the part of the Works?
- Maintenance Period or defects Liability Period for the part of the works will be counted
immediately when start using it.
• Can the architect issue the certificate of making good defects to the contractor?
- Yes, the architecture/contract has to issue a certificate of making good defects in respect of
the relevant part that were required to be made good have been made good.
Partial possession

Once the process of partial possession has been completed, contractor’s liquidated damages are
reduced by the proportion of the value of the possessed part of the Works to the contract sum.

• What is the employer’s responsibility to the retention?


The employer typically releases half of the retention monies for the Relevant Part to the
contractor.
• What is the portion of the retention will be released?
Architect must issue a payment certificate to release on the 1st moiety and 2nd moiety(after the
issue of CMOD) in the ratio of the estimated value of the occupied part. RP = VOP x R CS RP
• How does the partial possession impacted the insurance issue?
The parties insurance stay unaffected despite any arrangement for partial possession.
• What must the architect implement if the employer wishes to occupied part of the Works and
exercise his rights to partial possession?
It is an Architect job to issue Certificate of Partial completion (consist of Layout plan of where
will be occupied and estimated value of the occupied part) within 14 days of taking partial possession
of occupied parts.
Use or occupation before Practical Completion

Before the contractor is required to give consent the employer or the contractor as appropriate must notify the
insurers.

• Why and for what reason?


There are situation where the contractor has not completed by the date for completion and, although no sections of the Works
are sufficiently complete to allow the employer to take possession. The employer is nevertheless anxious to occupy at least part
of the Works.
- Employer or contractor must notify the insurers in case of making any changes in the insurance
arrangements
• What impact does does the action have to the followings:
1. Liquidated damages during the period of occupation?
-If we get sue for damages, insurers will protect us from exaggerated damages.
2. Certification of Practical Completion?
- Contract date can be adjusted by agreement but will cause a payment in the event of non-completion.
3. Release of retention money?
- There is no release of retention money until the practical completion can e certified.
4. Insuring of Works?
- Insuring the works will need to be settle with the insurer.
Practical Completion

• What are the three criteria required to be fulfilled for the architect to obliged to certify Practical Completion?

1. ‘Date for Completion’ separate dates that stated in each required section.
2. ‘Practical Completion’ – the date at which, the architect the works are completed.
3. ‘Completion Date’ – the date of completion

• Give a short definition of the following terms:


a. Latent defects: Concealed Flaw (failure in workmanships or materials)
b. Patent defects. Visible Flaw (found by inspection and show their symptom.)

• Which of the terms above relates directly to Defects liability Period? And why?
PATENT DEFECTS is more obvious to the client/contractor so it is necessary to be solved on the
contract period.
Practical Completion

• In deciding when the works have reached practical completion, which four areas falls under
consideration and analysis?

Technical specifications include into the contract should be completed before practical completion
is possible.The contractor should required building regulation approvals, collateral warranties, etc. to the
employer prior to completion certificate.And prevent patent defect before a completion certificate being
issued.

• Can the architect certify Practical Completion where there are very minor items of work outstanding?
It should be a AGREEMENT between others- such as engineer and contractor.
Failure to complete by the Completion date

In the event of the contractor fail to complete.


• The architect is required to issue what? And to who?
Fixing a new completion date to contractors.
• Once the notice has been issued to the contractor, the employer do what in relation to payments?
If a new completion date is later set and agreed between the employer and the contractor.
Claim loss and expense for the liquidated damages and ascertained damages from payments

• What will be the effect to the non-completion certificate?


It states that the employer prior to the issuance of Certificate of Non-completion. It will issue the
intention to claim liquidated damaged to inform the contractor about the payment or deduction.

• Is there a time limit where the architect must issue the certificate post contractor’s notification of
failure? In the case of non-completion by sub-contractor, an architect’s certificate is required.
Within 12 weeks after completion date

• Is it the contractor’s right to damages against the offending sub-contractor?


Yes. Including legal fees and compensation fee.
Liquidated and ascertained damages
Rate of ascertained and liquidated damages should be agreed and entered into the Appendix of the
contract to be allowed by the contractor in the event of failure to complete by the completion date.

• The rate is expressed as a specific sum for what period of time? Daily; Weekly or Monthly?
The rate expressed as a specific sum will be calculated daily(Per day) or weekly.

• On what basis can the loss be calculated?


The employer must consider the following likely damages which result from delay:
1. Direct Costs incurred under the Contract
2. Lost Revenue and Profit
3. Additional Project Administration Costs
4. Damages and Penalties to which they may be liable
5. Interest and Financing Costs
6. Cost Implications for third-party contracts
7. Losses for Tax or Investment Incentives
• Can the employer claim if the word “nil” is inserted?
No, the employer can’t claim if the word “nil” is inserted, the damages that are or are not to be
payable by the contractor in the event of failure to complete the works on time
• Can the employer claim if the Appendix is left blank?

It was held that this precluded any claim at all for delay, so the employer claim, it will be fail

• Before damages may be deducted, what are the 4 preconditions must be in place?

1. The contractor mustn't have failed and complete the works on time for completion in the contract.
2. The architect must perform the duty to decide the extensions of time.
3.the architect must have issued a certificate that the contractor has failed to complete the works by
date for completion
4. The employer must have notified the contractor that may have liquidated damages it may be deducted
or may be required to be paid.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy