Last edited 14 Jan 2019

Sectional completion in construction contracts

Sectional completion refers to a provision within construction contracts allowing different completion dates for different sections of the works. This is common on large projects that are completed in sections, allowing the client to take possession of the completed parts whilst construction continues on others.

Sectional completion differs from partial possession in that it is pre-planned and defined in the contract documents.

If sectional completion is required, it must be an express term of the contract, and reflected by the fact that there are multiple completion dates rather than just one. The extent of each section must be clearly defined and liquidated damages, and the amount of retention that will be released must be specified for each section. There may also need to be clarification of how extension of time provisions will be applied if, for example, delays to one section of the works have a knock-on effect on other sections (the cascade effect).

In procedural terms, sectional completion is similar to normal completion and follows the usual handover procedures (see handover to client). However, some work within the section may remain outstanding, such as the completion of commissioning, operation and maintenance manuals and as built drawings, which will cross all sections.

It may exclude mechanical and electrical service systems which are reliant on total completion before they can be properly tested and commissioned. This means that their needs to be an agreed protocol for re-entry into completed sections for the contractors to complete outstanding work.

Sectional completion requires particular care to be taken regarding:

Difficulties with logistics on site when different sections are in the possession of different parties.
The protection of completed sections from ongoing work.
The provision of appropriate insurance at all times for all sections.
The adoption of appropriate health and safety measures to deal with risks resulting from occupation of areas adjacent to, or only accessible through ongoing construction works.
The provision of appropriate security measures.

The consequences of sectional completion are that

Half of the retention is released for that section.
The Rectification Period begins for that section,
The contractor’s responsibility for insuring the works (if applicable) ends for that section.
The contractor’s liability for liquidated damages ends for that section.
The employer is now responsible for any damages to the works for that section.

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Comments

I note sectional completion may not include the completed M&E or other element etc depending on how it is detailed in the contract docs.

What about partial possession (which I know is not preplanned) . Can partial possession cert be issued of there are still outstanding issues such as M&E, fire alarm etc.

Presumably not because it has to be complete ?

Niall

Question

what are the item we need to compile in sectional completion?
how was the
format of sectional completion?
how to describe it is sectional completion
when we want to give them it is sectional completion? or how to make sectional
completion certificate? is it like handover? do we need to produce as built
drawing as per hand over?

Answer --designing buildings 08:19, 30 June 2013 (BST)

All the things you need to do for completion apply to sectional completion (while listing any outstanding work such as commissioning and O and M manuals and as built drawings which embrace all sections).
Sectional completion requirements must be either stipulated in tender documentation or be agreed by both parties and incorporated as an instruction.
It requires a certificate and sets out the percentage release of retention. In effect it follows normal handover procedures but applicable to a defined area. It normally excludes mechanical and electrical
service systems which are reliant on total completion before they can be properly tested and commissioned.
This means that their needs to be an agreed protocol for re-entry into handed over areas for the contractors to complete outstanding work.
Insurance provisions as well as security and access are issues of responsibility that should be addressed prior to granting sectional completion.

This project is under construction. Certain section is completed. Can we make sectional completion even there is not stated sectional completion in the document contract. Does it wrong contractually?

Sectional completion is agreed before the contract is entered into. Partial possession or early use can be agreed whilst the contract is running.