FINAL CERTIFICATE

Question 1

1. Under the provisions of an ABIC contract what is a final certificate?

Answer 1

Final Certificate is when the defects liability period has come to an end/construction contract has ended.

Question 2

2. Under the provisions of an ABIC contract when is it issued and by whom?

Answer 2

It is issued by the architect at the end of the defects liability period.

Question 3

3. What does the issue of the final certificate trigger?

Answer 3

The end of the construction contract and final payment due to the contractor. The remaining security is released to the contractor (by the owner).

Question 4

4. After the issue of the final certificate what obligation if any does the contractor have to rectify defects?

Answer 4

The contractor is obliged to rectify any defects, even if the DLP has ended (Clause M14.1) – so long as they have been identified during the DLP and are due to poor workmanship (not wear and tear).

Question 5

5. What recourse is available to an owner to get a defect rectified after the issue of the final certificate if the contractor refuses to do the work?

Answer 5

Architect to clarify if the defect was noted during the DLP or after (if within the DLP period, contractor is obliged to rectify, even after FC). If noted after FC, the owner should refer to the Home Warranty Insurance policy and can usually claim for damages in court.

Question 6

6. What are the obligations of an architect to the owner after the issue of the final certificate?

Answer 6

The client’s agreement with the owner has ended after FC, therefore they longer have any more obligations, nor can they issue any further instructions.