PRACTICAL COMPLETION

Question 1

1. Under the provisions of an ABIC contract what is the term practical completion?

Answer 1

The date (as assessed by the architect) when the works are substantially complete and are able to be occupied, with only minor defects to be rectified. All commissioning tests have been completed and approvals from authorities are obtained (i.e. OC from the PCA).

Question 2

2. How is the target date for completion of the works described in the ABIC contract + where?

Answer 2

Schedule 1, Item 22 states the Date for Practical Completion. Clause M1 describes when the works have reached PC…

Question 3

3. Under the provisions of an ABIC contract who decides when this date has been reached?

Answer 3

The architect.

Question 4

4. What does the date of practical completion trigger under the provisions of an ABIC contract? (i.e. what happens at practical completion?)

Answer 4

Defects Liability period begins (typically 12 months).

Question 5

5. What happens if the contractor does not complete the works by the due date + is late? What if the works are finished before the due date?

Answer 5

Liquidated damages come into effect if the works are not completed by PC.
If the works are finished early, the owner can occupy the building therefore triggering PC.

Question 6

6. Under the provisions of an ABIC contract can the target date for practical completion be changed + how?

Answer 6

Yes. Adjustment of time during the contract. But also if the owner moves in before the date of PC, then this automatically triggers PC.

Question 7

7. Under the provisions of an ABIC contract what is the procedure for the contractor when it believes the works are complete?

Answer 7

At least 10 working days before the date of PC, the contractor must inspect the works and prepare a detailed schedule of defects and incomplete necessary work and give this to the architect. The contractor must notify the architect of in writing when it considers the works to be at PC, and also provide any official documents (i.e. OC) and evidence of commissioning tests.

Question 8

8. Under the provisions of an ABIC contract what is the procedure for the architect when the contractor states the works are complete?

Answer 8

After receiving the contractor’s written notice of PC and schedule of defects, the architect must then carry out an inspection of the works promptly. If the architect considers the works to be at PC, they must notify the contractor within 5 working days. The architect must also notify the owner in writing of their obligation to release half of the security.

Question 9

9. What items must be complete at the date of practical completion?

Answer 9

Building works (substantially/for occupation)
Occupation Certificate
Commissioning tests
Defects register

Question 10

10. What type of items may not complete at practical completion? give examples

Answer 10

Items that will not inhibit the occupation/liveability and safety of the building, i.e. garden, painting, external finishing works.

Question 11

11. What documents are required prior to practical completion? Why is it important to have these prior to?

Answer 11

All commissioning tests and approvals obtained.

Question 12

12. How should the architect respond if both parties to the contract believe that practical completion has been reached but the architect does not agree?

Answer 12

The architect should not issue PC and state in writing the reasons why.

Question 13

13. Can practical completion be triggered other than by the architect? If so describe what happens under the terms of the ABIC contract.

Answer 13

If the owner takes possession of the site before PC, then this triggers PC. Therefore defects liability period begins and the owner can no longer claim for LDs. OC may not be obtained if the works are not considered complete. The architect should inform the owner at the beginning of the contract of this. Check contract and changeover of insurances.