Practical Completion?

[iken]

This may be a silly question, but can someone actually define "Practical Completion" for me.

I am currently invloved in a refit of a building's (shopping Centre) air con, which comprises 4 pipe Fan Coil Units (LTHW & CHW). This has been completed, and during the course once each FCU was complete (our portion) the unit was left to operate which it did, until the controls contractor completed his works. Because this was done at nights (Tenancy was always open in day) this took some time to complete. My problem now is that some units have been running for 12 months, with out "Practcal Completion" being awarded and hence our 12 month maintenance period has yet to begin.

What I am trying to determine, or imply to Client, is that our works were "Practically Complete" once we finished our works, and should not have to wait on others to complete theirs before we are awarded "PC". Does this sopund resonable.

 

[DRC1]

It is not a silly question and is often the subject of much debate. I believe what you call practical completion we call substantial completion. I would first check the agreement terms to see if it is defined there. However, I would say (and the generally accepted definition over here is)the unit is substantially complete when the owner has prctical use of the project. Since the unit has been running for a year, the major items such as the compressor, pipping etc. have survived the maintenance period. The only thing that may be left is any compatibility issues with the control systems.

 

[iken]

DRC1,

Thank you for your opinion, this was my belief also.

 

[GeoPaveTraffic]

I agree with DRC1.

 

[iken]

DRC1

I have looked through contract documentation, and have found no mention on how the "Practical Completion" will be derived.

How ever, I have found, under NZ3910 (Construction Contracts" which confirms our thoughts.

In short, it states "Practical completion is that stage in the execution of the work under the contract when the Contract Works or any Seperable Portion are complete except for minor omissions and minor defects;

which do not prevent the Contract Works or Seperable Portion from being used for their intended purpose.

Lokks like this spells it out pretty good.

Thanks for your input.