Sectional Completion/Partial Possession

Question 1

What is ‘partial possession’?

Answer 1

It’s a mechanism whereby the contractor can give possession of completed parts of the works before practical completion of the whole works. - Consent cannot be unreasonably withheld, but PP requires contractor consent.

Partial possession is anticipated for discrete areas of work.

Question 2

When looking at partial possession, is a separate practical completion certificate issued for the relevant part?

Answer 2

No.

Question 3

What is the effect of granting partial possession?

Answer 3

• The rate of liquidated damages is reduced in proportion to the value of the relevant parts;
• Half the retention is released for the relevant parts; and
• The contractor’s obligation to insure the relevant parts ceases.

Question 4

How does partial possession differ from early use?

Answer 4

With early use the site remains in the possession of the contractor and no obligations are transferred; with partial possession the relevant parts and obligations for it are transferred to the employer.

Question 5

What is ‘sectional completion’?

Answer 5

It’s a mechanism whereby the works are divided into distinct sections which may have different dates of completion.

Question 6

How does partial possession differ from sectional completion?

Answer 6

Sectional Completion is a contractally prescribed seperation of works.

Partial possession can arise at any point during the
contract and the contractor must consent to it.