Practical Completion – Explained (but not defined)

There have been numerous disputes which have centered on the issue of whether the construction Works have achieved Practical Completion or not. This is not at all surprising as most of the Standard Forms used in Malaysia of rely upon the issuance of a Certificate of Practical Completion to record when a project has indeed reached Practical Completion. The fact that the Certificate of Practical Completion is the document which also initiates such events as the release of the first moiety of retention, exclusion of liability for Liquidated and Ascertained Damages and changes in obligations in respect of insurance for the Works is by no means…(more)

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2 responses to “Practical Completion – Explained (but not defined)

    • Employer is in same boat as Contractor. He has to pay amount certified and then resolve dispute through mechanism in the contract. It will depend on the contract how the dispute is resolved but generally all contracts will place Employer in breach of Contract if he fails to honor a certificate. It is rare that this happens unless client has clerks of works or similar on site check up on Engineer/Architect or QS valuations. A company I worked for have experience in Vietnam where Employer blatantly tells CA to revise certificates etc after they have been issue. This is under FIDIC red book 1987 and the CA does as Employer states and revises certificates generally the are small errors in rounding up but it delays payments and Employer starts 28 day period for honoring certificates from receipt of revised certificate which is completely wrong. Employer is Vietnamese Government. The issue was raised many times but company came to the conclusion best to avoid the Employer in future business dealings.