Guide letter 37: Advice to client - final certificate

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Guide letters provide advice about matters architects should consider when composing letters to the parties involved in architectural projects.

1. When and how?

1.1 Write this letter prior to completion of the defects liability period and remind the client of their rights and responsibilities. Give the client plenty of notice.

1.2 Send this letter before the defects liability period is over.

2. Content

Confirm:

  • how the final certificate is assessed;
  • that most of the contractual relationship between the owner and the contractor ceases at the final certificate;
  • the procedures for claiming and obtaining the final certificate;
  • under some contracts the architect may issue a final certificate without a final claim from the contractor; 
  • that all defects and incomplete works known to the owner will have been satisfactorily completed; and
  • that the issue of the final certificate will also trigger the release of the remainder of the security.

Advise:

  • the anticipated date for the final certificate in accordance with the contract;
  • that the final contract price will be determined and will need to be agreed between the owner and the contractor; and
  • your preliminary assessment of security to be released.
3. Action

3.1 Writing this letter is highly desirable to ensure the client understands their rights and responsibilities prior to issue of the final certificate.

4. What happens next?

4.1 Implement any instructions agreed with the client in a timely manner to ensure there is no delay in the issue of the final certificate.

5. Are there other possibilities?

5.1 Not really, but at the very least discuss with the client and confirm discussion in writing.

6. What can happen if you don't?

6.1 It is essential that the client fully understands the ramifications of the final certificate. Failure by you to implement the client’s objectives within the contract may cause them to suffer loss.

7. Copies

7.1 Architect's file

Disclaimer

This content is provided by the Australian Institute of Architects for reference purposes and as general guidance. It does not take into account specific circumstances and should not be relied on in that way. It is not legal, financial, insurance, or other advice and you should seek independent verification or advice before relying on this content in circumstances where loss or damage may result. The Institute endeavours to publish content that is accurate at the time it is published, but does not accept responsibility for content that may or has become inaccurate over time. Using this website and content is subject to the Acumen User Licence.

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