Other Notices Flashcards
What is partial possession?
A situation where the client wishes to take possession of part of the works even though this is not specifically anticipated by the contract documents. It can only be taken with the consent of the contactor but that consent may not usually be withheld.
What is the effect of partial possession?
Any party for which partial possession is given is deemed to have achieved PC.
Half the retention must be released
defects liability period begins
liquidated damages deducted
client is responsible for that part and should insure it.
What is the difference between partial possession and sectional completion?
Sectional completion is pre-agreed prior to entering into the the contract, whilst partial possession is used for early handover of an area of the works which was not formally pre-agreed.
What is a suspension notice?
Parties to a contract have the right to suspend performance when a required payment of a notified sum has not been made.
What are the requirements for notice of suspension?
Seven days notice must be given of the intention to suspend performance.
What provides the statutory right to suspend for non-payment?
The Housing Grants Construction and Regeneration Act 1996
When can suspension be pursued?
breach of contract by the employer
employer becoming insolvent
force majeure
agreement between parties where proceeding with the works is temporarily impossible.
What is a termination notice?
Where a party to the contract behaves in such as was as to indicate that it not longer intends to accepts its obligations under the contract, this is considered to be a repudiatory breach, allowing the innocent party to terminate the contract.
What certificated should the CA issue at the end of the defects liability period?
A certificate of making good is issued once all patent defect have been made good and triggers final completion.
A Final Completion Certificate is issued at the end of the rectification period, once al defects have been rectified and triggers the payment of final retention monies.
