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CERTIFICATE OF PRACTICAL
COMPLETION
The RIBA Plan of Work 2013 suggests that: 'Practical
Completion is a contractual term used in the Building
Contract to signify the date on which a project is handed
over to the client. The date triggers a number of contractual
mechanisms.
Practical completion is referred to as 'substantial
completion' on some forms of contract, particularly in the
United States.
The contract administrator certifies practical completion
when all the works described in the contract have been
carried out. Certifying practical completion has the effect of:
Releasing half of the retention (an amount retained from
payments due to the contractor to ensure they complete the
works).
Ending the contractor's liability for liquidated damages
(damages that become payable to the client in the event that
there is a breach of contract by the contractor - generally by
failing to complete the works by the completion date).
Signifying the beginning of the defects liability period.
ISSUES CERTIFICATE OF PRACTICAL
COMPLETION IN MALAYSIA
In Malaysia, the Certificate of Completion and Compliance
will be issued by a Principal Submitting Person (PSP).It also
has a number of contractual and legal implications:
The PSP may be a professional architect, professional
engineer or building draughtsman registered with the Board
of Architects Malaysia (LAM).
The PSP must be registered with their respective boards
under the law relating to their field, such as the Architects
Act 1967 or Registration of Engineers Act 1967 (Revised
2015).
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