CONTINUING PROFESSIONAL DEVELOPMENT 2013

Transcription

1 CONTINUING PROFESSIONAL DEVELOPMENT 2013 Certificates and Certifications by Architects under the PAM Form of Building Contract 2006 Prepared by Ar Mohd Zulhemlee An CERTIFICATES The need for Certificates: Building Contract is signed between the Owner and Contractor Architect has to record that certain stages of work has been achieved by the Contractor The mechanism and document employed is through certification. The architect has to exercise his professional judgment and make his opinion which is fair to both parties

2 CERTIFICATE 1. Definition of a Certificate: expression of the Architect s opinion in a specific format. certain stages of the works have been achieved. 2. Validity of the Certificate: matters in the Contract empowered to the Architect to certify. upon the issuance of the Certificate. Architect exercise independent judgment. 3. Implications Privileges or penalty to Contractor : i. To receive Payment ( eq. Interim Certificate ) ii. Relieve responsibility of Works ( eq. Certificate of Practical Completion ) iii. Allow Liquidated Damages to be deducted by the Employer. 4. Types of certificates: i. Payment Certificate ii. Work status certificate (Time related) Cl Certificate of Practical Completion Cl.15.1(a) in the opinion of the Architect, the Employer can have full use of the Works for their intended purposes, notwithstanding that there may be works and defects of a minor nature still to be executed and the Contractor has given the Architect a written undertaking to make good and to complete such works and defects within a reasonable time specified by the Architect ; and Cl.15.1(b) other requirements expressly stated in the Contract Documents as a prerequisite for the issuance of the Certificate of Practical Completion have been complied with.

3 Cl Certificate of Practical Completion 1. Cl.15.1Definition of Practical Completion : i. Employer can have full use of the Works for their intended purposes ii. The Contractor have given a written undertaking to complete minor works and defects iii. Other requirements expressly stated in the Contract have been complied 2. Cl.15.2 Procedure of issuing the Certificate of Practical Completion: i. Contractor to give written notice to inform Architect that the Works is practically completed. ii. Within 14 days of the receipt of the Contractor s notice the Architect shall issue either the Certificate of Practical Completion or the Certificate of Non Completion. iii. Date of practical completion shall be either date when Contractor s notice is received (no minor defects) or date when Contractor s written undertaking to make good and complete minor defects within a reasonable time specified by the Architect, is received. 3. Implications of issuance of Certificate of Practical Completion: i. Contractor obligations to complete the Works comes to end ii. Release of 1 st moiety to Contractor ( 2 ½% retention ) iii. Defects Liability Period start to run iv. Employer to take over responsibility of the Works v. Period of Final Measurement and Valuation start to run.

4 4. Clause Contractor s failure to comply with undertaking: Employers recourse is to: i. Clause 15.3(a) Grant additional time to be specified by the Architect to Contractor ii. Clause 15.3(b) Employ other person to execute and complete the outstanding works ( all cost incurred to be set-off by the Employer under Cl.30.4 ) iii. Clause 15.3(c) Accept the works with minor defects, subject to set-off under Cl The Certificate of Practical Completion shall be issued to the Contractor and copied to the Employer and Nominated Sub Contractors. Cl Certificate of Non-Completion Cl.22.1 If the Contractor fails to complete the Works by the Completion Date, and the Architect is of the opinion that the same ought reasonably so to have been completed, the Architect shall issue a Certificate of Non-Completion. Upon the issuance of the Certificate of Non-Completion, the Contractor shall pay or allow the Employer a sum calculated at the rate stated in the Appendix as Liquidated Damages for the period from the Completion Date to the date of Practical Completion. The Employer may recover such sum as a debt or may deduct such sum from any monies due or to become due to the Contractor under the Contract or the Employer may recover such sum from the Performance Bond. The Employer shall inform the Contractor in writing of such deduction or such debt due from the Contractor. The imposition of Liquidated Damages by the Employer shall not be taken into account by the Architect in the issuance of payment certificates and Final Certificate, and is not subject to the set-off procedures under Clause 30.4 and adjudication. PAM Tutorial 2006

5 Cl Certificate of Non Completion 1. Shall be issued to Contractor if he fails to complete Works by the Completion Date or any extended date. The architect certifies that the Works ought reasonably so to have been completed. 2. Architect must have already considered EOT application or due to Contractor Deduction of Liquidated Damages (LD): Cl.22.1 the Employer must inform the Contractor in writing of the Employer s intention to impose LD Cl.22.1 Imposition of LD shall not be taken into payment certificates and Final Certificate Cl.22.1 Deduction of LD is not a set off and not subject to set off procedures Clause 22.2 Agreed Liquidated Damages amount: 1. Cl.22.2 LD is a genuine pre estimate of Employer s loss and/ or damage unless the contrary is proven by the Contractor PAM Tutorial 2006 Cl Certificate of Non Completion Clause 22.3 CNC revoked by Certificate of Extension of Time 1. Cl.22.3 states that any Certificate of Extension of Time issued after a Certificate Of Non Completion will revoke the latter certificate. Architect to advise Employer to re-assess the LD entitled to be deducted. To repay any over deduction plus interest to Contractor. 2. Cl.22.3 clarifies that further Certificate of Non Completion can be issued if the Contractor fails to complete the Works within the extended Completion Date. Implications of the issue of the Certificate on Non Completion: 1. Employer reserves the right to deduct LAD from payment due, or recover LAD as a debt or recover LAD from the Performance Bond. 2. Suggest that current EOT applications have been evaluated 3. Obligations of the Contractor to complete the Works has not ceased. PAM Tutorial 2006

6 Cl Extension of Time If the Contractor is of the opinion that the completion of the Works is or will be delayed beyond the Completion Date by any of the Relevant Events stated in Clause 23.8, he may apply for an extension of time provided always that: Cl.23.1(a) the Contractor shall give written notice to the Architect his intention to claim for such extension of time together with an initial estimate of the extension of time he may require supported with all particulars of the cause of delay. Such notice must be given within twenty eight (28) Days from the date of AI, CAI or the commencement of the Relevant Event, whichever is earlier. The giving of such written notice shall be condition precedent to an entitlement of extension of time ; and Cl.23.1(b) within twenty eight (28) Days of the end of the cause of delay, the Contractor shall send to the Architect his final claim for extension of time duly supported with all particulars to enable the Architect to assess any extension of time to be granted. If the Contractor fails to submit such particulars within the stated time (or within such longer period as may be agreed in writing by the Architect), it shall be deemed that the Contractor has assessed that such Relevant Event will not delay the completion of the Works beyond the Completion Date. Cl Extension of Time Cl.23.2 Where the particulars of the written notice given under Clause 23.1 include references to Nominated Sub-Contractors, the Contractor shall forthwith send a copy of such written notice and particulars to the Nominated Sub-Contractor concerned. Cl.23.3 If the Architect is of the opinion that the particulars submitted by the Contractor are insufficient to enable him to decide on the application for extension of time, the Architect shall within twenty eight (28) Days from receipt of the Contractor s particulars under Clause 23.1(b), inform him of any deficiency in his submission and may require the Contractor to provide such further particulars within a further twenty eight (28) Days or within such period of time as may be stated by the Architect in writing. Cl.23.4 when the Contractor has submitted sufficient particulars for the Architect s consideration, the Architect shall subject to Clauses 23.5,23.6 and 23.8, consider the Contractor s submission and shall either reject the Contractor s application or issue a Certificate of Extension of Time within six (6) Weeks from the receipt of sufficient particulars. The Architect may issue the written notice of rejection or the Certificate of Extension of Time before or after the Completion Date.

7 Cl Extension of Time In assessing the extension of time, the Architect may take into account the following: Cl.23.5(a) the effect or extent of any work omitted under the Contract, provided always that the Architect shall not fix a Completion Date earlier than the Completion Date stated in the Appendix ; and Cl.23.5(b) any other Relevant Events which in the Architect s opinion will have an effect on the Contractor s entitlement to an extension of time. Cl.23.6 The Contractor shall constantly use his best endeavor to prevent or reduce delay in progress of the Works, and to do all that may be reasonably be required to the satisfaction of the Architect to prevent and reduce delay or further delay in the completion of the Works beyond the Completion Date. Cl.23.7 The Architect shall notify every Nominated Sub-Contractor in writing of each decision of the Architect when fixing a later Completion Date. Cl Certificate of Extension of Time Why the Need for Extension of Time: To preserve the Employers right to impose LAD for delays due to Employers or his agents actions. Reasons For Delay: i. Due to Employer ii. Due to Contractor iii. Due to Neutral Events. Procedure for Extension of Time Application: Cl.23.1 If in the opinion of the Contractor that progress of Work is being or likely to be delayed by any of the Relevant Events stated in Cl.23.8 i. Cl.23.1(a) Contractor to give written notice of his intention to claim for EOT (condition precedent)to the Architect within 28 days of AI,CAI or Relevant Events, with estimate of EOT required. ii. Cl.23.1(b) Contractor to submit final claim for EOT within 28 days from the end of the Relevant Events with particulars to enable Architect to assess any EOT to be granted.

8 Cl.23.2 The Contractor to provide one copy of the notice and particulars to NSC if the particulars include references to the NSC Cl.23.3 The Architect within 28 days of receipt of the EOT application shall request for further information from the Contractor which shall be submitted to the Architect within further 28 days or as stated by the Architect in writing. Architect s empowerment to grant Extension of Time: Architect can only grant EOT based on Relevant Events stated in Cl.23.8 Consideration of EOT shall also be subject to Cl.23.5 and 23.6 Cl.23.5(a) the effect or extent of any work omitted under the Contract Cl.23.5(b) any other Relevant Events in which the Architects opinion will have an effect on Contractor s entitlement to EOT Cl.23.6 Contractor to constantly use his best endeavor to prevent or reduce delay PAM Tutorial 2006 Cl Extension of Time Cl.23.8 Relevant events: The following are the Relevant Events referred to in Clause 23.0: Cl.23.8(a) Force Majeure; Cl.23.8(b) exceptionally inclement weather Cl.23.8(c) loss and/or damage occasioned by one or more of the contingencies referred to in Clause 20.A,20.B or 20.C as the case may be, provided always that the same is not due to any negligence, omission, default and/or breach of contract by the Contractor and/ or Nominated Sub-Contractors ; Cl.23.8(d) civil commotion, strike or lockout affecting any of the trades employed upon the Works or any of the trades engaged in the preparation, manufacture or transportation of any materials and goods required for the Works;

9 Cl Extension of Time Cl.23.8(e) the Contractor not having received in due time the necessary AI (including those for or in regard to the expenditure of P.C Sums and Provisional Sums, further drawings, details, levels, and any other information) for which he has already applied in writing to the Architect. The Contractor s application must be submitted to the Architect in sufficient time before the commencement of construction of the affected works, to enable the Architect to issue the necessary AI within a period which would not materially affect the progress of the affected works, having regard to the Completion Date. Provided always that the AI was not required as a result of any negligence, omission, default and/or breach of contract by the Contractor and/or Nominated Sub-Contractor Cl.23.8(f) delay by the employer in giving possession of the Site or any section of the Site in accordance with Clause 21.1 and 21.2 Cl.23.8(g) compliance with AI issued by the Architect under Clause 1.4,11.2 and 21.4 Cl.23.8(h) delay on part of Nominated Sub-Contractors for the reasons set out in Clauses 21.4(a) to 21.4(w) of the PAM 2006 Sub-Contract; Cl Extension of Time Cl.23.8(i) re-nomination of Nominated Sub-Contractors as set out in Clause 27.1; Cl.23.8(j) delay on part of craftsmen, tradesmen or other contractors employed or engaged by the Employer in executing work not forming part of the Contract or failure to execute such work; Cl.23.8(g) compliance with AI issued by the Architect under Clause 1.4,11.2 and 21.4 Cl.23.8(k) delay or failure in the supply of materials and goods which the Employer had agreed to supply for the Works; Cl.23.8(l) the opening up for inspection of any work covered up, testing any materials, goods or executed work in accordance with Clause 6.3, unless the inspection or test: 23.8(l)(i) is provided for in the Contract Bills; 23.8(l)(ii) shows that the works, materials and goods were not in accordance with the Contract; or 23.8(l)(iii) is required by the Architect in consequence of some prior negligence, omission, default and/or breach of Contract by the Contractor;

10 Cl Extension of Time Cl.23.8(m) any act of prevention or breach of contract by the Employer; Cl.23.8(n) war damage under Clause 32; Cl.23.8(o) compliance with AI issued in connection with the discovery od antiquities under Clause 33; Cl.23.8(p) compliance with any changes to any law, regulations, by-law or terms and conditions of any Appropriate Authority and Service Provider; Cl.23.8(q) delay caused by any Appropriate Authority and Service Provider in carrying out, or failure to carry out their works which affects the Contractor s work progress, provided always that such delay is not due to any negligence, omission, default and/or breach of contract by the Contractor and/or Nominated Sub- Contractors; Cl.23.8(r) appointment of a replacement Person under Article 3, 4, 5 and 6; Cl.23.8(s) compliance with AI issued in connection with disputes with neighboring property owners provided always that such dispute is not caused by negligence, omission, default and/or breach of contract by the Contractor and/or Nominated Sub-Contractors; Cl Extension of Time Cl.23.8(t) delay as a result of the execution of work for which a Provisional Quantity is included in the Contract Bills which in the opinion of the Architect is not a reasonably accurate forecast of the quantity of the work required; Cl.23.8(u) failure of the Employer to give in due time entry to or exit from the Site or any part through or over any land, by way of passage adjoining or connected to the Site and in possession or control of the Employer; Cl.23.8(v) suspension by the Contractor of his obligations under Clause 30.7 and 30.8; Cl.23.8(w) suspension of the whole or part of the Works by order of an Appropriate Authority provided the same is not due to any negligence, omission, default and/or breach of contract by the Contractor and/or Nominated Sub-Contractors; and Cl.23.8(x) any other ground for extension of time expressly stated in the Contract

11 Cl Extension of Time Cl.23.9 Where a Relevant Event occurs after the issuance of the Certificate of Non- Completion, the Architect shall grant an extension of time. The extension of time granted shall be added to the Completion Date of the Works or any section of the Works. Cl The Architect may (but not obliged to) within twelve (12) Weeks after the date of Practical Completion review and fix a Completion Date later than that previously fixed, if in his opinion the fixing of such later Completion Date is fair and reasonable having regard to any of the Relevant Events, whether upon reviewing a previous decision or otherwise and whether or not a Relevant Event has been specifically notified by the Contractor under Clause No such final review of extension of time shall result in a decrease in any extension of time already granted by the Architect. In the event the fixing of such later Completion Date affects the amount of Liquidated Damages the Employer is entitled to retain, he shall repay any surplus amount to the Contractor within the Period of Honoring Certificates. PAM Tutorial 2006

12 Implications of the issue of the Certificate of Extension of Time : 1. Contractor have extra time to complete Works ( New Completion Date ) 2. Insurances and Performance Bond to be extended by Contractor 3. Contractor can submit Loss and/or Expense Claim on specific items 4. Liquidated Damages calculations end PAM Tutorial 2006 Cl Certificate And Payment Cl.30.1 The Contractor shall submit a payment application at the Interim Claim Interval stated in the Appendix with complete details and particulars as required by the Architect and Quantity Surveyor, to enable them to consider and ascertain the amount to be included in an Interim Certificate. Upon receipt of the Contractor s details and particulars, the Architect after having received the payment valuation from the Quantity Surveyor shall, within twenty one (21) Days from the Date of receipt of the Contractor s application, issue an Interim Certificate to the Employer with a copy to the Contractor, and the Employer shall thereafter pay the amount certified to the Contractor within the Period of Honoring Certificates. Any failure by the Contractor to submit a payment application shall be deemed to be a waiver of his contractual entitlement for that Interim Certificate, and the Architect may or may not issue an Interim Certificate under the circumstances. After the issuance of the Certificate of Practical Completion, Interim Certificates shall be issued as and when further amounts are ascertained by the Architect and Quantity Surveyor as payable to the Contractor by the Employer.

13 Cl Certificate And Payment Cl.30.2 The amount as stated due in an Interim Certificate shall, subject to any agreement between the parties as to stage payments, be the total value of the work properly executed and include the percentage of the value of the materials and goods stated in the Appendix up to the date of the Contractor s payment application less any amount which may be retained by the Employer under Clauses 30.5 and 30.6 and, less the amounts previously certified under Clause The materials and goods must be for incorporation into the permanent works and have been delivered to and properly stored at the Site and be protected against loss, damage or deterioration, and be in accordance with the Contract. The certificate shall only include the value of materials and goods which are reasonably, properly and not prematurely brought to the Site. Cl.30.3 Save for clerical, computational or typographical error or errors of a similar nature, the Architect shall not be entitled to revise or correct any payment certificate issued by him under the Contract. Provided always that the Architect may, by a later certificate, make correction or modification in respect of any valuation errors in any earlier certificate. Cl Certificate And Payment Types of Payment Certificates: i. Interim Certificate ii. Penultimate Certificate iii. Final Certificate To observe in the Appendix: i. Interim Claim Interval ( Cl.30.1 and ) ii. Period of Honoring Certificate ( Cl.30.1 ) Cl.30.1 Payment Application and issuance of Architect s Certificate: 1. Contractor to submit payment application with complete details to Architect. 2. Architect to issue Interim Certificate to Employer with copy to Contractor within 21 days from receipt of the Contractor s application. 3. Employer to make payment to the Contractor based on Architect s certification within Period of Honoring Certificate form date of the certificate 4. If Contractor do not submit any payment application, it is deemed that they have waived their entitlement for the Interim Certificate; the Architect may or may not issue an Interim Certificate. 5. Interim Certificate can be issued after CPC when there are further amounts due to Contractor.

14 Cl Certificate And Payment Cl.30.2 Amount Due in Architect s Certificate: i. Estimated value of work properly done. ii. Value of materials and goods delivered to the site. iii. Less retention sum ( Cl.30.5 and 30.6 ) iv. Less amount previously certified ( Cl.30.1 ) Employer and Contractor can agree to stage payments Materials delivered to the site must be according to the Contract, properly protected and not prematurely delivered to the site. Refer to Article 7 (az) for definition of site as it allows land and other places obtained by Contractor and accepted by Employer. Cl.30.3 states that Architect shall not revise any certificate issued by him, unless the corrections is due to clerical, computational or typographical error or errors of a similar nature. Architect can make corrections or modifications by a later certificate for valuation errors in earlier certificate, by issuing AI under Clause 6.3 to reject the work not properly executed. Cl Certificate And Payment Cl.30.4 Set Off by Employer: Expressly provided under clauses: i. Cl.2.4 Failure of Contractor to comply with AI ii. Cl.4.4 Fees, Levies and Charges iii. Cl.5.1 Setting Out iv. Cl.6.5(e) Works not in Accordance with Contract v. Cl.6.7 Failure of Contractor to comply with instruction issued under Cl.6.5 vi. Cl.14.4 Warranty of Title of Goods and Materials vii. Cl.15.3(b) and (c) Contractor s failure to comply with undertaking ( defects ) viii. Cl.15.4 Defects not made good by Contractor ix. Cl.15.5 Defects rectified by other party due to Contractor s failure to attend x. Cl.19.5 Payment of Workman Compensation insurance premium by Employer xi. Cl.20.A.3 Payment of CAR insurance premium by Employer Procedures for Set Off 1. Architect to make assessment of set off and submit with complete details to Contractor 2. Written notice have been given to Contractor by either Employer or Architect by hand or registered post of the intention to set off the amount and its ground.

15 Cl Certificate And Payment Procedures for Set Off 3. The written notice to be issued not later than 28 days before any set off is deducted from any payment by the Employer. 4. The Contractor can dispute the amount of set-off. Within 21 days from Contractor s receipt of Employer/ Architect s notice, send by hand or registered post reasons and particulars of the disagreement. 5. If within 21 days after the Contractor s response both parties cant agree with the amount, either party can refer the matter to adjudication under Cl The set-off can only take place if the Contractor has agreed with the amount or the adjudicator have issued his decision. Cl Penultimate Certificate May be issued to release the retention sum or any other outstanding sums for all Nominated Sub Contractor and/or Nominated Suppliers. The certificate to be issued not later than 14 days after the issuance of the Certificate of Making Good Defects. Cl. 16.1(d) Certificate of Partial Completion Cl.16.1 If at any time before Practical Completion of the Works, the Employer wishes to take possession and occupy any part of the Works ( the Occupied Part ) and the consent of the Contractor (whose consent shall not be unreasonably delayed or withheld) has been obtained, then notwithstanding anything expressed or implied elsewhere in the Contract, the Employer may take possession of the Occupied Part and the following shall apply: Cl.16.1(a) within fourteen (14) Days from the date on which the Employer has taken possession of the Occupied Part, the Architect shall issue a Certificate of Partial Completion. The Certificate of Partial Completion shall state the Architect s estimate of the approximate total value of the Occupied Part and for all purposes of Clause 16.0, the value so stated shall be deemed to be the total value of the Occupied Part. Cl.16.1(b) for the purposes of Clause 15.4, 15.5 and 16.1(f), Practical Completion of the Occupied Part shall be deemed to have occurred and the Defects Liability Period in respect of the Occupied Part shall be deemed to have commenced on the date which the Employer has taken possession; Cl.16.1(c) the Liquidated Damages under Clause 22.1 shall be reduced by the ratio of the estimated value of the Occupied Part to the Contract Sum;

16 Cl. 16.1(d) Certificate of Partial Completion Cl.16.1(d) upon the issuance of the Certificate of Practical Completion, the Architect shall within fourteen (14) Days issue a certificate to release half the amount of the Retention Fund in the ration of the estimated value of the Occupied Part to the Contract Sum. The Contractor shall be entitled to payment within the Period of Honoring Certificates. The amount of the Limit of Retention Fund shall then be reduced by the same amount. Cl.16.1(e) when in the opinion of the Architect all Defects in the Occupied Part which he may have required to be made good under Clause 15.4 or 15.5 have been made good, he shall issue a Certificate of Making Good Defects under Clause 15.6 in respect of the Occupied Part; and Cl.16.1(f) upon the issuance of the Certificate of Making Good Defects of the Occupied Part, the Architect shall within fourteen (14) Days issue a certificate for the release of the remaining amount of the Retention Fund in respect of the Occupied Part. The Contractor shall be entitled for payment within the Period of Honouring Certificate. Cl. 16.1(d) Certificate of Partial Completion 1. Definition of Partial Occupation: Occurs when Employer takes possession and occupy any parts of the Works with ( Cl.16.1 ) or without the Contractor s consent (Cl.16.2). The area involved termed as Occupied Part Cl.16.2 allows the Employer to enter and occupy part of the Works without Contractor s consent provided that: i. Completion of the Works has been delayed and CNC have been issued ii. The occupation will not cause any unreasonable disturbance to the progress of the remaining Works. Cl.16.1(a) Architect to issue the Certificate of Partial Completion for the Occupied Part within 14 days from the date the Employer takes possession of the Occupied Part.

17 Cl. 16.1(d) Certificate of Partial Completion Cl.16.1(a) Architect to issue the Certificate of Partial Completion for the Occupied Part within 14 days from the date the Employer takes possession of the Occupied Part. 2. Certificate of Partial Completion: Architect to establish an approximate value of the Occupied Part. i. Defects Liability Period for the Occupied Part will start to run ii. iii. Liquidated Damages shall be reduced proportionately to the value of the Occupied Part First moiety for the Occupied Part proportionate to the Retention Sum to be released to the Contractor. Cl.16.3 Architect to issue instruction to Contractor to remove his site facilities, construction plant or equipment, materials and goods from the Occupied Part. Cl Certificate of Sectional Completion Cl.21.2 Where there are different Dates of Commencement for sections of the Works, these shall be stated in the Appendix. Cl.21.3 Where there are different Completion Dates for the sections of the Works stated in the Contract Documents, the Architect shall issue a Certificate of Sectional Completion when the sections of the Works are Practically Completed. The provisions in the Contract in regard to Practical Completion and Defects Liability Period under Clause 15.0, extension of time under Clause 23.0, Liquidated Damages under Clause 22.0 and the release of Retention Fund under Clause 30.6 shall apply with necessary changes as if each such section was a separate and distinct contract.

18 Cl Certificate of Sectional Completion Conditions: 1. Contract Document have incorporated different Completion Dates for sections of the Works. 2. Each section will be treated as if it is a separate contract in terms of: i. Practical Completion ii. iii. iv. Defects Liability Period Extension of Time Liquidated Damages v. Release of Retention Fund. Cl.15.6 Certificate of Making Good Defects Cl.15.6 Upon completion of making good all Defects which may have been required to be made good under Clause 15.4, the Contractor shall forthwith give written notice to the Architect to that effect. The Architect shall within fourteen (14) Days do either one of the following: 15.6(a) if the Architect is of the opinion that there is no Defects or the Contractor has made good all Defects, the Architect shall issue a Certificate of Making Good Defects and the date of making good Defects shall be the date of receipt of the Contractor s written notice. The Certificate of Making Good Defects shall be issued to the Contractor and copies shall be extended to the Employer and Nominated Sub-Contractors; or 15.6(b) if the Architect is of the opinion that the Defects have not been made good, the Architect shall give written notice to the Contractor with copies to the Nominated Sub-Contractors stating the reasons for the non issuance of the Certificate of Making Good Defects.

19 Cl.15.6 Certificate of Making Good Defects Defects: Defects defined under Article 7(x): defects, shrinkages, or other faults due to materials or workmanship not in accordance with the Contract and Nominated Sub-Contract and/or due to any faulty design (if any) undertaken by the Contractor and Sub-Contractor. Defects Liability Period (DLP) defined under Article 7(y) Certify satisfactorily completion of the rectifications of defects as required under Cl.15.4 of the Contract. Apply only to minor defects identified during CPC and defects which appear within the Defects Liability Period included in Schedule of Defects. Cl Certificate of Making Good Defects (CMGD) Procedures: 1. Cl.15.4 Schedule of Defects to be issued by Architect not later than 14 days after end of Defects Liability Period. 2. Contractor to complete defects rectifications within 28 days from receipt of Schedule of Defects from Architect. 3. Cl.15.6 Upon completion Contractor shall give written notice to inform Architect of the completion of defects rectifications. 4. Within 14 days of the Contractor s written notice: i. The Architect to issue Certificate of Making Good Defects dated on the day the written notice is received from the Contractor. ii. Architect give written notice to Contractor stating reasons for non issuance of the CMGD. Cl.15.5 provision for Architect to instruct Contractor to attend to any critical defects during the Defects Liability Period.

20 PAM Tutorial 2006 Cl Certificate of Making Good Defects Recourse to Employer for Contractor s non compliance: Cl.15.4 Employer can engage other party to complete the defects rectification. Employer can inform Architect to instruct Contractor to leave the defects in the Works. In both instances the Employer shall set-off the cost as provided under Cl.30.4 Implications of the issue of the certificate : 1. No further issuance of the Schedule of Defects 2. Contractor no longer contractually obliged to rectify defects 3. The second moiety to be released to the Contractor 4. Time for preparation of Final Certificate start to run.

21 Cl Final Certificate Cl The Final Certificate shall be issued: Cl (a) within twenty one (21) Days after the Period of Honoring Certificates for the payment of Penultimate Certificate; or Cl.30.14(b) within twenty eight (28) Days after the Certificate of Making Good Defects has been issued, in the event no Penultimate Certificate has been issued. Cl The Final Certificate shall state: Cl.30.15(a) the Final Account; less Cl.30.15(b) the total sums certified in previous payment certificates (whether paid or not paid) to the Contractor, and the difference, if any, between the sums shall be the balance due to the Contractor by the Employer or conversely as the case may be. The balance shall be payable by the Employer to the Contractor within the Period of Honoring Certificates or if it is a debt payable by the Contractor to the Employer, shall be payable by the Contractor within the Period of Honoring Certificate. The Architect shall not be obliged to issue the Final Certificate before the issuance of a Certificate of Making Good Defects. Cl Final Certificate Important items to be included in the certificate: 1. Final Account. 2. Total sums certified to Contractor in previous payment certificates. 3. Net value of this certificate ( balance due to Contractor or debt recoverable by the Employer from the Contractor ) Cl Final Certificate to be issued within 21 days after the Period of Honoring Certificates for payment of Penultimate Certificate or within 21 days after CMGD have been issued ( no Penultimate Certificate has been issued ) Cl Final Certificate is conclusive on the final value of the Works, but not conclusive evidence that any work, materials and goods, designs executed by the Contractor and NSC are in accordance to the Contract.

22 Implications of the issue of the certificate : 1. Contractor entitled to full and final payment as stated in the certificate within 14 days of issue by Architect. 2. No further payment claims from Contractor. 3. End of Contract between Contractor and Employer.