Level 2 - Practical Completion

Question 1

What are the consequences of Practical Completion?

Answer 1

• Possession of the site reverts to the employer, therefore the contractor is no longer responsible for the site and the employer takes back ownership. The employer must now insure the works themself.
• The first part of retention is released.
• Rectification Period begins
• Contractor’s potential liability of LDs ceases
• Contractor has 3 months to give QS documents for final account (3 months D&B)

Question 2

What is the Rectification period?

Answer 2

Is a period of time typically a year in JCT, during that time the main contractor is responsible for any defects that arise. At the end of the rectification period the CA /Architect will carry out an inspection of any defects and the main contractor will make good and a Notice of completion will be issued.

This was previously referred to as the Defects Liability Period, however this terminology has been superseded in the new JCT contracts.

Question 3

What is Retention?

Answer 3

Retention is money that is held from the main contractor whilst the works are undertaken, at PC half of retention is released to the contractor and then at the end of the rectification period the other half will be released.