Legal and Contractual Solutions
Completion and Defects
Solutions on completion and defects: practical completion, defects, and passing settled losses down the chain.
Practical and substantial completionPremiumThere is no universal factual test detached from the contract. The certifier must apply the relevant completion provision to the works as a whole, considering the nature and extent of...
Employer possession before completionFreeEmployer entry before completion does not produce one automatic result. The parties must distinguish contractual possession from limited access and apply the provisions governing...
Subcontract practical completion datePremiumThe answer depends on the subcontract mechanism. Under the form considered in Vascroft, the subcontractor's written notice starts the process; silence, dissent and failure to agree each...
Late or second defects scheduleFreeOmission from the first schedule does not ordinarily extinguish liability for defective work. It may, however, affect the contractual right to require the contractor to return, the...
Refusal of access to remedy defectsPremiumRefusal of access does not ordinarily erase a breach arising from defective work. It may, however, affect whether the employer can recover the full cost of using others where the...
Early release of subcontract retentionPremiumA subcontractor that has completed its own correction work is not automatically entitled to early release if the subcontract makes release conditional on a main-contract certificate. The...
Recovering defect investigation costsPremiumRecovery is not automatic. It depends on the contract, the purpose and reasonableness of the investigation, the contractor's response and whether the claimed fees constitute recoverable...
Passing settlement loss to a subcontractorPremiumA settlement with the employer does not bind a non-settling subcontractor or prove the amount recoverable downstream. The contractor must establish subcontract breach, causation and a...
Patent and latent defectsPremiumA patent defect is discoverable on the reasonable inspection appropriate at the relevant time. A latent defect is not. The classification depends on the defect, the inspection reasonably...
Quantity surveyor's liability for defective workFreeLiability depends on the quantity surveyor's appointment and the information reasonably available. A valuation duty is not ordinarily an absolute warranty that every valued item is...
Tenant compensation from defective workPremiumTenant compensation may be recoverable where defective work and the contractor's failure to remedy cause the premises to be vacated, but the employer must prove legal liability, causation...