How often have you received a Notice of Practical Completion of the Sub-Contract Works?
Asked 6 months ago2020-05-29 07:34:18
I found this issue quite alarming over the years in that not only do very few Sub-Contractors issue a Notice of Practical Completion for their Works stating the date that Practical Completion was achieved, but also some of the Main Contractor's staff were not aware that this is an obligation for certain standard forms [JCT DBSub/C 2016], and more surprising on the few occasions when they received a Notice of Practical Completion, the main contractor was not aware of the timeline to respond, if they disagreed that the Sub-Contract Works had reached Practical Completion.
The benefit for the Sub-Contractor of issuing a Notice of Practical Completion for the Sub-Contract Works is not only, the issue of the first release of the retention fund, but more importantly, it puts an end date on the liability for delay to Sub-Contract Works.
For the Main Contractor, it needs to respond within 14 days [JCT D&B form] from receipt of the Notice of Practical Completion by the Sub-Contractor, if they disagree. This then leaves open the liability end date for delay, no retention money is released and also enables a focus for the Sub-Contractor to complete its outstanding works, as listed out by the Main Contractor in its notice of dissent.
If you are a sub-contractor, do you issue Notices of Practical Completion of the Sub-Contract Works and if you are a Main Contractor have you issued a notice of dissent ?
I have reviewed a notice of dissent, but because it was issued out of time, the date stated by the Sub-Contractor in its Notice of Practical Completion of the Sub-Contract Works was deemed valid, so this is an area worth watching out for.