Page 64 - Interactive report Ar Site Practice

6) CERTIFICATE OF MAKING GOOD DEFFECT (CMGD)

DEFINITION OF CERTIFICATE OF MAKING GOOD DEFFECT (CMGD)

Certificate(s) of Making Good Defects means a notice issued by the Employer's
Representative pursuant to the Building Contract and/or the Bio Contract (as the case
may be) that all defects in the Base build Works and/or Bio Works (as the case may be)
(and any other works referred to in such notice) appearing during the defects liability
period specified in the Building Contract and/or the Bio Contract (as the case may
be)have been made good.

THE PURPOSE OF THE CERTIFICATE OF MAKING GOOD DEFECTS (CMGD)

During this period, the client reports any defects that arise in the works to the
contract administrator who decides whether they are in fact defects (i.e. works that
are not in accordance with the contract), or whether they are maintenance issues. If
the contract administrator considers that they are defects, then they may issue
instructions to the contractor to make good the defects within a reasonable time.

WHAT IS A DEFECT PERIOD?

A defects liability period is a period of time following practical completion during
which a contractor remains liable under the building contract for dealing with any
defects which become apparent. A defects liability period is usually a period of
around six or 12 months but it can vary depending on the contract used.

WHAT ARE INTERIM CERTIFICATES?

Interim certificates provide a mechanism for the client to make payments to the
contractor before the works are complete. The Housing Grants, Construction and
Regeneration Act, states that a party to a construction contract in excess of 45 days is
entitled to interim or stage payments.

DIFFICULTIES SURROUNDING PRACTICAL COMPLETION

It is important to note that the defects liability period is not a chance to correct
problems apparent at practical completion, it is a period during which the
contractor may be recalled to rectify defects which appear. If there are defects

apparent before practical completion, then these should be rectified before a
certificate of practical completion is issued.