Final certificate for construction contracts
Contents |
[edit] Introduction
The final certificate is certification by the contract administrator that a construction contract has been fully completed. It is issued at the end of the defects liability period and has the effect of releasing all remaining money due to the contractor, including any remaining retention.
The value of the final certificate will be based on the final account agreed by the cost consultant and the contractor. This means that all patent defects must have been remedied, all adjustments to the contract sum must have been agreed and all claims settled.
Where proceedings have been commenced in relation to a dispute, the conclusiveness of the final certificate is subject to the findings of those proceedings. In addition, the final certificate itself can be disputed (usually within 28 days). Adjudication, arbitration or other proceedings may then be necessary to resolve the dispute. The final certificate is then only conclusive in relation to matters that are not disputed.
If the client intends to pay a different amount from that shown on the certificate, then they must give notice to the contractor of the amount they intend to pay and the basis for its calculation (pay less notice - see Housing Grants, Construction and Regeneration Act for more information).
[edit] Alternative procedures
In design and build contracts (such as Joint Contracts Tribunal (JCT) DB 16) the final certificate may be described as the final statement.
In construction management contracts, where there are a number of trade contracts, final statements are issued for each trade contract. Once final statements have been issued for each trade contract, the construction manager co-ordinates preparation of the final report and issues the final certificate for the whole project.
There is a similar procedure on management contracts, where final certificates are issued by the management contractor for each individual works contract, and then once all works contracts have received a final certificate, the management contractor provides the client's contract administrator (or cost consultant) with information allowing them to calculate the prime cost (the cost of the works contracts) and a final certificate is issued to the management contractor.
[edit] Alternative meaning
Rather confusingly, the term 'final certificate' can also refer to a completion certificate issued by a building control body in relation to the building regulations.
Manual to the Building Regulations: A code of practice for use in England, published by HM Government in July 2020, states: ‘Final certificate refers to the certificate issued by the approved inspector to the person carrying out the work and the local authority and confirms that the work in the initial notice is complete and that the approved inspector is satisfied that it complies with the relevant requirements of the Building Regulations.’
See Building regulations completion certificate for more information.
[edit] Related articles on Designing Buildings Wiki
- Building regulations completion certificate.
- Certificates in the construction industry.
- Contract administrator.
- Defects liability period.
- Final account.
- Housing Grants, Construction and Regeneration Act.
- Retention.
- Interim certificates.
- Sectional completion.
- Topping out.
- What is a final account.
- Work-to-complete list.
Featured articles and news
A transformative shift in the design, construction and management of built assets.
Apprenticeship announcement by the Prime Minister
Welcomed but with call for more actionable detail.
Heat pump announcements, what homeowners need to know
An 'ultimate guide to heat pumps' from a heating company.
Construction contract awards reach 7.1bn in February
Their highest level in seven months.
The journey to sustainability in heritage
Research is the key to better understanding.
Heritage approaches to adaptation, mitigation and loss.
Bridging the gap between policy, finance and installation.
Development on brownfield land
Definition, background, policy and the latest consultation.
With the Design Framework for Building Services.
Retrofit of Buildings, a CIOB Technical Publication
Pertinent technical issues, measures and the roles involved.
ECA joins HSE campaign to support mental health
Working Minds’ five simple steps based on risk assessment.
Mental health in the construction industry
Mental health issues in brief with related articles.
Transitional arrangements, Building Control and the BSR.
For pre-October buildings with substantial progress by April.
Why quality counts in domestic ventilation systems
From products, to systems to the installation.
Empowering the Future with CIOB Academy
Lifelong learning, upscaling, and reskilling for the built environment.
Comments
What does a 'Part Final Certificate' mean? Does it mean for the specified works it is fully complete (but there are other works as part of the application) Or that the specified works are part complete?
This might relate to a final certificate for part of the works - ie where there is partial possession or sectional completion - see the comments at the end of those articles.
However, the specific term 'part final certificate' is more commonly used in relation to building regulations approvals.