TUTORIAL 8

Group members : Penny Leung ( 0328245 )

Sahil Gunesh ( 0328569 )
Shum Wen Jun ( 0325151 )
Sow Wei Henn ( 0324998 )
It is the point at which a building project is complete, save for minor
defects. Some construction practitioners describe this point as when
the building project is “capable of beneficial occupation and use”

Failure to complete the works by the specified completion date means

the contractor is in breach of contract, which could result in the
deduction of liquidated damages or, if liquidated damages are not
applicable, a claim from the employer for general (unliquidated)
damages for delay.
Once practical completion is achieved, the employer is able to take
possession of the works

The legal limitation period for claims begins to run

The risk of loss or damage to (and responsibility for) the works

usually transfers from the contractor to the employer

The employer’s right to instruct variations to the works will cease

 Clause 15.2

A written notice has to be submitted to that

effect to the Architect before the works are
practically completed.

The Architect has to response to the written notice within (14) days either one of the
following :
• Clause 15.2(a), if works aren’t completed in his opinion, the Architect would
have to reply by written notice, informing the reasons why the work is not
practically completed.
• Clause 15.2(b), if works are practically completed in his opinion, the Architect
should issue the Certificate of Practical Completion.
 In either one of the situations, all the nominated sub
contractors would have to be notified.

According to clause 15.1, it states that practically completion still

can be achieved although with minor defects as long as the
employer can have full use of the works for their intended
purposes.

The date of Practical Completion shall be :

• Clause 15.2(b)(i), the date of receipt of Contractor’s written notice where
there’re minor defects.
• Clause 15.2(b)(ii), the date of receipt of the Contractor’s written notice,
where there’re no defects.
The final measurement for final account can start as most of the works are complete

First half of retention sum is released to contractor

Once the work is handed over to the employer, it is the employer who takes the
responsibility of insuring the works.(contractor’s liability ceases)

Once the CPC is issued, the contractor can no longer be charged for liquidated
damages

Also, once CPC is issued, the Defects Liability Period starts. (period of 6 months
during which if any defect is found by user, the contractor must repair defect to the
satisfaction of the client and architect)