Penultimate certificate for construction contracts - Revision history

Designing Buildings at 08:29, 21 September 2020

2020-09-21T08:29:36Z

← Older revision		Revision as of 08:29, 21 September 2020
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	* Retention.		* Retention.

−	[[Category:Contracts_/_payment]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]]

Designing Buildings at 10:58, 20 August 2019

2019-08-20T10:58:22Z

← Older revision		Revision as of 10:58, 20 August 2019
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	NB There is no provision for the penultimate certificate to be withheld once practical completion has been certified. This means that certifying practical completion is a crucial point in the progress of the works, when the penultimate payment is triggered, the contractor’s liability for liquidated damages ceases and the client takes possession of the site. See practical completion for more information.		NB There is no provision for the penultimate certificate to be withheld once practical completion has been certified. This means that certifying practical completion is a crucial point in the progress of the works, when the penultimate payment is triggered, the contractor’s liability for liquidated damages ceases and the client takes possession of the site. See practical completion for more information.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

		+	* Certificates in the construction industry.
	* Construction contracts.		* Construction contracts.
	* Defects.		* Defects.

Editor at 16:36, 1 December 2016

2016-12-01T16:36:01Z

← Older revision		Revision as of 16:36, 1 December 2016
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−		+	The JCT minor works building contract (MW 16) includes provision for a ‘penultimate certicate’, which signifies that there is no more work to value and triggers the final progress payment. Once issued, only the final certificate remains.
−	The JCT minor works building contract (~~MW11~~) includes provision for a ‘penultimate ~~certiﬁcate’~~, which signifies that there is no more work to value and triggers the final progress payment. Once issued, only the final certificate remains.	+

	The due date for payment is 7 days after practical completion and the penultimate certificate must be issued within 5 days of the due date. The final date for payment is 14 days from the due date.		The due date for payment is 7 days after practical completion and the penultimate certificate must be issued within 5 days of the due date. The final date for payment is 14 days from the due date.
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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Construction contracts.
−	*Defects.
−	*Defects liability period.
−	*Final certificate.
−	*Housing Grants Construction and Regeneration Act.
−	*Liquidated damages.
−	*Pay less notice.
−	*Payment notice.
−	*Practical completion.
−	*Retention.

−	~~[[Category:Contracts_/_payment]]~~	+	* Construction contracts.
		+	* Defects.
		+	* Defects liability period.
		+	* Final certificate.
		+	* Housing Grants Construction and Regeneration Act.
		+	* Liquidated damages.
		+	* Pay less notice.
		+	* Payment notice.
		+	* Practical completion.
		+	* Retention.
		+
	[[Category:Contracts_/_payment]]		[[Category:Contracts_/_payment]]

Designing Buildings: moved Penultimate certificate to Penultimate certificate for construction contracts

2014-10-25T07:03:53Z

moved Penultimate certificate to Penultimate certificate for construction contracts

← Older revision

Revision as of 07:03, 25 October 2014

Designing Buildings at 13:56, 20 January 2014

2014-01-20T13:56:39Z

← Older revision		Revision as of 13:56, 20 January 2014
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−	The JCT minor works building contract includes provision for a ‘penultimate certiﬁcate’, which signifies that there is no more work to value and triggers the final progress payment. Once issued, only the final certificate remains.	+	The JCT minor works building contract (MW11) includes provision for a ‘penultimate certiﬁcate’, which signifies that there is no more work to value and triggers the final progress payment. Once issued, only the final certificate remains.

−	The penultimate ~~certiﬁcate~~ must be issued within 14 days of the ~~certification of practical completion~~. The final date for payment ~~of the penultimate certiﬁcate~~ is 14 days from the date ~~it is issued~~.	+	The due date for payment is 7 days after practical completion and the penultimate certificate must be issued within 5 days of the due date. The final date for payment is 14 days from the due date.

	The difference between the penultimate certificate and a normal certificate for a progress payment is that half the retention is now released. Retention is a percentage of the amount certified as due to the contractor that is retained by the client to ensure that the contractor properly completes the works. So for example if the total retention was 5%, then 97.5% of the amount owed will become payable once the penultimate certificate has been issued, rather than 95% under a normal progress payment.		The difference between the penultimate certificate and a normal certificate for a progress payment is that half the retention is now released. Retention is a percentage of the amount certified as due to the contractor that is retained by the client to ensure that the contractor properly completes the works. So for example if the total retention was 5%, then 97.5% of the amount owed will become payable once the penultimate certificate has been issued, rather than 95% under a normal progress payment.

Designing Buildings at 09:33, 27 September 2013

2013-09-27T09:33:47Z

← Older revision		Revision as of 09:33, 27 September 2013
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	The JCT minor works building contract includes provision for a ‘penultimate certiﬁcate’, which signifies that there is no more work to value and triggers the final progress payment. Once issued, only the final certificate remains.		The JCT minor works building contract includes provision for a ‘penultimate certiﬁcate’, which signifies that there is no more work to value and triggers the final progress payment. Once issued, only the final certificate remains.

−	The penultimate certiﬁcate must be issued within 14 days of the certification of practical completion. The final date for payment of the penultimate certiﬁcate is 14 days from the date of it is issued.	+	The penultimate certiﬁcate must be issued within 14 days of the certification of practical completion. The final date for payment of the penultimate certiﬁcate is 14 days from the date it is issued.

−	The difference between the penultimate certificate and a normal certificate for a progress payment is that half the retention is now released. Retention is a percentage of the amount certified as due to the contractor that is retained by the client to ensure that the contractor properly completes the works. So for example if the total retention was 5%, then 97.5% of the amount owed will become payable once the penultimate certificate has been issued, rather than 95% under a normal progress payment.	+	The difference between the penultimate certificate and a normal certificate for a progress payment is that half the retention is now released. Retention is a percentage of the amount certified as due to the contractor that is retained by the client to ensure that the contractor properly completes the works. So for example if the total retention was 5%, then 97.5% of the amount owed will become payable once the penultimate certificate has been issued, rather than 95% under a normal progress payment.

	There will be no further payments until any defects that become apparent have been rectified and the final certificate is issued. At this point the final payment will be made, including the release of the remaining retention.		There will be no further payments until any defects that become apparent have been rectified and the final certificate is issued. At this point the final payment will be made, including the release of the remaining retention.
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	*Defects liability period.		*Defects liability period.
	*Final certificate.		*Final certificate.
−	*Housing Grants Construction and Regeneration Act.	+	*Housing Grants Construction and Regeneration Act.
		+	*Liquidated damages.
	*Pay less notice.		*Pay less notice.
	*Payment notice.		*Payment notice.
	*Practical completion.		*Practical completion.
		+	*Retention.

	[[Category:Contracts_/_payment]]		[[Category:Contracts_/_payment]]
	[[Category:Contracts_/_payment]]		[[Category:Contracts_/_payment]]

Designing Buildings: Created page with " The JCT minor works building contract includes provision for a ‘penultimate certiﬁcate’, which signifies that there is no more work to value and triggers the final progres..."

2013-09-27T09:31:07Z

Created page with " The JCT minor works building contract includes provision for a ‘penultimate certiﬁcate’, which signifies that there is no more work to value and triggers the final progres..."

New page

The JCT minor works building contract includes provision for a ‘penultimate certiﬁcate’, which signifies that there is no more work to value and triggers the final progress payment. Once issued, only the final certificate remains.

The penultimate certiﬁcate must be issued within 14 days of the certification of practical completion. The final date for payment of the penultimate certiﬁcate is 14 days from the date of it is issued.

The difference between the penultimate certificate and a normal certificate for a progress payment is that half the retention is now released. Retention is a percentage of the amount certified as due to the contractor that is retained by the client to ensure that the contractor properly completes the works. So for example if the total retention was 5%, then 97.5% of the amount owed will become payable once the penultimate certificate has been issued, rather than 95% under a normal progress payment.

There will be no further payments until any defects that become apparent have been rectified and the final certificate is issued. At this point the final payment will be made, including the release of the remaining retention.

The Housing Grants Construction and Regeneration Act (The Construction Act) sets out requirements for making payments under construction contracts, including a requirement to issue a pay less notice (previously a withholding notice) if the client intends to pay less than the amount set out in a payment notice, setting out the basis for its calculation. See The Construction Act for more information.

NB There is no provision for the penultimate certificate to be withheld once practical completion has been certified. This means that certifying practical completion is a crucial point in the progress of the works, when the penultimate payment is triggered, the contractor’s liability for liquidated damages ceases and the client takes possession of the site. See practical completion for more information.

= Find out more =

=== Related articles on Designing Buildings Wiki ===
*Construction contracts.
*Defects.
*Defects liability period.
*Final certificate.
*Housing Grants Construction and Regeneration Act.
*Pay less notice.
*Payment notice.
*Practical completion.

[[Category:Contracts_/_payment]]
[[Category:Contracts_/_payment]]