Guide letter 34: Advice to contractor - practical completion

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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 to the contractor when you are satisfied that the contractor has reached practical completion in accordance with the definition under the contract.

1.2 Prior to sending this letter you must ensure that your client's objectives resulting from Guide letter 33 are clearly understood and that you have carried out procedures in accordance with the contract.

1.3 Remind the contractor that issuing the notice of practical completion constitutes the commencement of the defects liability period and the change over of insurances.

2. Content

Attach:

  • notice of practical completion which must state the date of practical completion and the expiry date for the defects liability period; and
  • the progress certificate for that portion of the security to be released at practical completion.

Request:

  • all guarantees and warranties specified under the contract within the time frames specified
  • all documents including Certificate of Occupation as required under the contract have been received and are satisfactory – make reference to the relevant specification clauses and times when certificates are required
  • as-built drawings within the time frames specified; and
  • maintenance manuals (unless the contract allows them to be issued during the defects liability period – if so, specify a time frame within this period).

Advise:

  • when those works which remain incomplete must be finalised (refer to the relevant contract).
3. Action

3.1 You may write this letter outlining any requests you have of the contractor at this time but it is necessary to issue the notice of practical completion and progress certificate in accordance with the terms and conditions of the relevant contract.

4. What happens next?

4.1 Ensure you notify your client about the release of part of the security and ensure that guarantees are adjusted as applicable. Notify your client that as of the time of practical completion the client needs to have insurance in place (for instance, under the ABIC contracts the owner takes possession of the works at 4.00pm on the date the architect issues the notice of practical completion). (Refer Guide letter 33).

4.2 Ensure that the contractor provides you with all information requested.

5. Are there other possibilities?

No.

6. What can happen if you don't?

6.1 Failure to issue the notice of practical completion will lead to confusion and inconvenience for both the client and contractor and may result in expense to the client.

7. Copies

7.1 Architect's file

7.2 Client

7.3 Specialist consultants

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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