* Under 2005 The Certificate Of Practical J.C.T. Completion has far reaching effects upon the rights and obligations of all concerned within the contract these include the commencement of the defects liability period which usually lasts for 6 months.
Possession of the site returns to the employer.
The risk and damage to works, and third party liability transfers back to the employer.
Retention is payable in part (50%).
Arbitration may be sought if required.
No further variation to works may be issued unless monies for works to be carried out are re-calculated and agreed.
The limitation period begins.
Application for the Certificate of completion may be made and within 14 days of receipt of application the relevant body must issue the said certificate of completion.
* The Certificate of Making Good Defects is a certificate that is in relation to the completion of defects, imperfections, shrinkage and any other fault raised during the defect liability period.
It is issued when in the opinion of the Architect and others the contractor has rectified and made good all defects and any other faults within time frame of the defect liability period of time allowed by the Architect/ Engineer and confirmed in writing.
The date will be stated when the contractor completed said works.
* The relevance of The Health and Safety file is such that it provides as much and relevant information as possible regarding all works carried out in the completion of the contract. It is inclusive of all method statements and risk assessments pertaining to the works. It shows any problems that may apply to the future of the development / structure etc .It minimises
Any risk to operatives involved in any future works that may be carried out, Such as maintenance, renovation, demolition or repair.
The file must be handed to the employer at the end of the contract.
* LATENT DEFECTS
The possible routes open for a client once a latent defect has been discovered is to invoke certain insurances already in place ,and certain conditions under J.c.t terms of contract
* Collateral warranty.
There are also some alternative routes
* Latent defect insurance
* N.H.B.C Insurance(Various)
* NHBC’s warranty and insurance cover, available for up to 12 years, covering over 80% of all UK’s new build social housing developments. It is specifically designed to protect Housing Associations (HAs) and other Registered Social Landlords (RSLs) build projects including new build, conversions and renovations, multiple occupancy projects, foyer schemes, student accommodation and mixed-use sites. This comprehensive warranty provides extensive cover for contractor defect liability and insolvency for up to 2 years after completion. Building failures cover for latent defects significantly reducing the need for collateral warranties
* Collateral Warranty J.C.T 2005 9.4
The client may wish the contractor to provide a collateral warranty under J.C.T 2005 9.4
Collateral warranties are contracts requiring the relevant parties to conclude a separate agreement. The promise by the Contractor is similar to the contract details at practical completion(Defect Liability).
If the contractor does not comply with the employers notice he may be liable for a claim of damages for breach of main contract. However if a defect does not show until a much later date ,It requires the client to pursue for damages in the way of contractual entitlement.
If there is no insurance against the failure to provide collateral damages the employer can consider amendments to the standard form of contract.
Latent Defects insurance
* Latent defect insurance is a long-term insurance cover .It includes new buildings against damage or the imminent threat of damage caused by defective design, workmanship and materials in the structure of the building. The structure of the building normally means the foundation, walls, floors, roof, other load-bearing elements, the waterproof envelope and if the building has a basement, it’s waterproofing element.
* Cover is also available for loss of rent or revenuelost as a result of damage caused by a latent defect. Some insurers nowoffer Latent Defects insurance for projects retaining existing buildings and for existing buildings including some coverfor non-structural components
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