Partial Completion

Samuel,

It is possible to agree upon the partial completion date at a point in a project where there is a value in doing so. e.g. Release of one building, Acceptance of one unit etc.

The consequence will depend upon the reasons for which the partial completion is being done, if it is agreed that by turning over a major part of project may enable the company to start operation and meet their commitments then the Contractor may be given contratual bonus or be absolved of liquidity damages etc. If after the partial completion the project critical areas are still pending it will not be of much significane in contractual terms and LD etc may be applied.

The final turnover certificate will have usually the dates of final completion by contractor, however keeping in view of Contractors effort in partial completion which was significant for the company the company may consider issuing the certificate in date of partial completion.


Regards,

Ashraf

Samuel,


I aggred with Ashraf and decided to add this comment.Partial completion date maybe requested either by Contractor or Client maybe for the reasons mentioned by Ashraf. This could be introduced to the contract once the rpacticability of it is evaluated and agreed within the contract. The defect libity period counts from the date a section or part is handed over and half of the retention money - one moitey - if contained in the contract is released.

Works not completed as at contract completion or extension date could be subjected to LD or penalty as specified in the contract.

The Final certificate would be isuued on staisfactory substantial completion of the project as a whole. The usual question here is what is substantial completion? is when taking over certificate is issued or all defects and signal list works effected?. I believe the most opinion is when the project is in a condition certified for the intended purpose it is said to be substantially completed.

The above scenario are severally found in roads and bridges that are executed in phases, also in building construction of repetitive development like prototype housing, mixed deveoplment etc.

Regards,

Raphael

All things are possible post contract, but one must be careful in agreeing the terms of the agreement.

The most likely scenario is that the client has managed to let / sell one part of the project early, and would like to realise the cash early (may be a condition of the sale / let). The contractor does not have to agree. However it would be a short sighted contractor that did not agree, if he wanted to work for the client again.

It is most unlikely that a client would agree to accept partial completion of a contract post contract, unless he were being threatened with the contractor going into bankruptcy.

As part of the agreement, the contractor will no doubt seek to limit the possible LAD’s, agree that the defects liability for the part handed over starts from the date of partial completion, possibly agree for additional money to be paid for changes in logistics, out of sequence working etc etc. There are many legitimate issues that a contractor may seek to bring up again and renegotiate from the original contract.

The whole agreement must be carefully described in writing and signed off by both parties, setting out all the new terms and conditions of contract which have been agreed.

The Certificate of Practical Copmpletion will still be given at the same point, when any defects still in existence do not affect the beneficial use of the project by the client, or there is an agreement by the contractor to complete all outstanding works / defects within an agreed period, and the client is happy to accept such an undertaking.

Check the follwing link

http://eng.lacity.org/techdocs/pdmv2/Chapter%2022%20v2/Procedure%2022_1%20V2%20Oct06.pdf