SARAWAK PROFESSIONAL PRACTICE TALK

RESEARCH SHARING SESSION:

MANAGING PRACTICAL
COMPLETION AND
THINGS TO CONSIDER

Presenter : Ar Adrianta & Ar Ridha

13/4/18
 COMMON ISSUES IN CPC
1. WHERE EMPLOYER TAKE POSSESION OF A BUILDING, CAN CONTRACTOR
CLAIM FOR CPC?

2. CAN CPC BE ISSUED WITHOUT CONTRACTOR FULFILLING ALL HIS

OBLIGATIONS?

3. CAN CPC BE RETRACTED BY THE ARCHITECT DUE TO FINDINGS OF MAJOR

DEFECT DURING PRE-DLP?

4. WHAT HAPPEN WHEN CLIENT GIVE VP WITHOUT CPC?

5. CAN ARCHITECT WITHOLD CPC?

6. HOW DO YOU HANDLE A CONTRACTOR THAT APPLIES CPC WITH MANY

MAJOR DEFECTS?

7. CAN ARCHITECT GIVE CPC WITH CONDITIONS?

THERE ARE MANY PARTIES IN A CONTRACT
PROCUMENT TIME LINE
 CPC, CCC, VP

WHICH ONE COMES FIRST?

 UNDERSTANDING THE LINK BETWEEN CCC,CPC & VP
Submission to OSC for • FORM B Interim Final Inspection I Deposit CCC to
propose development • PDC 6, Inspection PBAN, TNB & PBT/JKR LA, Developer ,
CONSTRUCTION MSIG Vol II TNB, BOMBA, Permohonan Sambungan LAM
PERMIT KM / BP/ Structure/ • Borang PBAN, IWK, komunikasi.
PROCESS Engineering/ Earthwork/ JKJ103, DOSH dan FORM F
Infrastructure/ Landscape JKR/PBT. Final Inspection II JPBM, FORM G1-G21
FORM A : Submission BP/ • Sijil tanah
DOSH, APP CLEARANCE
Structure • etc (IWK/MAJAARI) LETTER
PRE
CONSULTATION
Water, TNB, CONSIDERATION COMMENCEMENT INTERIM FINAL
Telco, PTG FOR DEVELOPMENT OF WORK INSPECTION INSPECTION CCC
Certify FORM G1-G21

Commence
Tender

Award

CMGD
BUILDING

work
CPC

FC
CONSTRUCTION
PROCESS CONSTRUCTION PERIOD DLP

2c Walls/ Window -10%

4 Delivery of title-2.5%
2d Roof / Wiring-10%
2a Foundation-10%

3 Water/ Electricity
HOUSING

Connected -17.5%
2b Structure- 15%

2g Drainage-2.5%

5b Release 2.5%
2e Finishes-10%

5a Release 2.5%
DEVELOPMENT
1 Deposit-10%

2h Road- 2.5%
2f Sewage-5%

@ 24 month
PROCESS

@ 8month
VP
Stage Certification for Building/ parcel
DLP 24 Month
KM and BP APDL
Approved Developer Apply
Advertising/ DELIVERY OF Requirement for VP KPKT Form 9
Developers License & Commence of 1. CCC issued Withdrawal of
VACANT Surplus monies
Submission of open Housing 1st sale & SPA 2. Purchaser settle due
SIFUS & SOP Development Account signing
POSSESSION
payment up to stage
• Schedule G & I -
• Within 24 Month 3. Water/ electricity Ready
KPKT form 11
CONSTRUCTION PERMIT Stage SSS & for Connection
Withdrawal
APDL approved to CPSP • Schedule H & J– 4. The completion of sub
monies
CONTRACTUAL REQUIREMENT application • Within 36 Month clause 15(2) deviation
Commence sale
5. In case strata, Title
H.D.A REQUIREMENT
Issued
STRATA REQUIREMENT
 CAN CPC ISSUED BEFORE CCC?

CONDITIONS TO
CONSIDER

STANDARD WHEN CONTRACT WHEN SCOPE OF

CONTRACT REQUIREMENT WORK OF
OBLIGATES CONTRACTOR
CONTRACTOR TO EXTENDS OUT
CPC BEFORE CCC FULFILL CCC THEN THE
REQUIREMENTS APPROVE BP

-CONTRACTOR -CONTRACTOR
OBLIGATION TO OBLIGATION TO
FULLFILL THE FULLFILL THE
CONTRACT CONTRACT
REQUIREMENT REQUIREMENT
-NO EOT -PARTIAL CPC GIVEN
KNOW YOUR SCOPE OF WORK THROUGH SUBSET
ANALYSIS
CCC > CPC CPC > CCC

CCC
CPC
CPC
CCC
CPC

= VP CANNOT BE GIVEN = VP CAN BE GIVEN EARLY

UNTIL CCC
ALL OF THE CONTRACT HAS
ONE SAME GOAL!

PRACTICAL COMPLETION !!!

 PRE POST
CONSTRUCTION CONSTRUCTION
CONSTRUCTION

MAPPING PAM CONTRACT 2006

Interim cert.
(Cls 30.1)
Date of Completion Penultimate
Letter of Commencement POH 21 Days Date CMGD Final Cert.
(Cls 30.1 Cert. for
Award (Cls 21.1 & (Cls 21.1 & (Cls 15.6) (Cls 30.15)
and Appendix) NSC/NS
Appendix) Appendix) (Cls 30.13)

CONSTRUCTION PERIOD DEFECT LIABILITY PERIOD 14 Days 21/28 Days

MAPPING JKR 203A REV1/2010 CONTRACT

1st Valuation Subsequent
(Cls 28.1) Valuation
(Cls 28.2)
Interim cert.
Date (Cls 28.3) Next Interim Date Final
Letter cert. CMGD
Commence Completion Cert.
of POH 30 Days (Cls 28.3)
(Cls 48.4)
(Cls 38.2) (Cls 28.6) (Cls 39.1) (Cls 31.3)
Award POH 30 Days

CONSTRUCTION PERIOD DEFECT LIABILITY PERIOD 3 month

from
CMGD
•ISSUES OF CPC ON GROUND
 WHAT THE CONTRACTOR FACE
Employer
• Interfere in the consultant and contractors work.
• Late nomination for the award of NSC
• Interference by 3rd party Contractor by Employer
• Employer ask to work and complete on time, payment never on time.

Consultant
• Consultant not firm and listen to the employer
• Not clear on consultant SOP for CPC.
• Consultant revoke CPC after issuance.
• Contractor apply CPC, consultant issue CNC
• Contractor apply EOT 1 day before completion date, consultant issue
CNC.
• Consultant take too long to issue CPC.
• Consultant cant issue CPC due to client keep adding new VO works.
 WHAT ARE THE ISSUES SO/CA FACE
Works
• Contractor apply CPC prematurely.
• There are works incomplete when applying CPC
• Overlook scope and forgot to complete at the time of CPC application

Non compliance work

• Work not done to contract requirements
• Too many Non Compliance Work and not closed.
• Too many minor defects accumulating to major defect.

Close out Documentation

• Contractor don’t know how to apply CPC.
• Work ready , documentation such as asbuilt, warranty and O&M have
not compiled.
WHAT THE COMMERCIAL PURCHASER FACE WITH CPC/VP
DEFINATION OF PRACTICAL
COMPLETION?
CPC CAN BE ISSUED WHEN ONLY LATENT LEFT
AT THE DATE OF PRACTICAL COMPLETION
CASE LAW- J. Jarvis and Sons -v- Westminster Corporation (1978) 7
BLR 64 HL

-Brief facts: Works delayed by a nominated piling contractor

(defective piles)

Salmon LJ:
- practical completion as completion for the purpose of allowing
the employers to take possession of the works and use them
as intended.
- practical completion did not mean completion down to the last
detail, however trivial and unimportant.
-Only latent defects at the date of practical completion

- High standard !
PRACTICAL COMPLETION FOR BUILDING CANT
BE PERFECT
CASE LAW: Emson Eastern Ltd -v- E.M.E. Developments Ltd (1991) 55 BLR114

-Brief facts: Practical Completion certified after Emson went into receivership.
-Issues was if all snagging and remedial works were required to be made good
before completion?

Judge Newey
- "should keep in mind that building construction is not like the manufacture of
goods in a factory. ...[it was] impossible to achieve the same degree of
perfection as can a manufacturer. His view was that it must be rare for a new
building to have every screw and every brush of paint correct “

- Realistic definition of practical completion !

PRACTICAL COMPLETION IS WHEN WORKS FIT FOR
PURPOSE TO BE USE AND ONLY MINOR DEFECTS

CASE LAW : Vigour Ltd v Hyundai Engineering and Construction

(August 2008) HKCF

-Application for leave to appeal against an award

- Definition of PC:
"'Practical Completion' means ... the Works ... fully available for
possession and use, subject only to items of minor works ...
'minor works' shall not include work which would otherwise
inconvenience or unreasonably disturb occupants in their
possession and use of the Works following Practical Completion.

- Practical Approach
 MALAYSIA COURT

DALAM MAHKAMAH RAYUAN MALAYSIA BIDANGKUASA RAYUAN

RAYUAN SIVIL NO. W-02-926-2006
SOON TEIK DEVELOPMENT SDN BHD VS LIEW

CORUM : ZALEHA ZAHARI, JCA ZAINUN ALI, JCA ZAHARAH

IBRAHIM, JCA

A certificate by an architect certifying practical completion must be a

document that

• leaves no doubt on the face of the document that the construction of

the building has been practically completed

• leaving no room for those who rely on it to say otherwise.

 There is no absolute definition
of practical completion, and case law is
very complex.

There is some debate about

when practical completion can be
certified and whether it can be certified
where there are very minor (de
minimis) items 'not affecting beneficial
occupancy' that remain incomplete.
DIFFERENT TYPE OF CONTRACT IN MARKET
 COMPARISON OF CONTRACT CLAUSE

1. PAM CONTRACT 1998

2. PAM CONTRACT 2006
3. JKR CONTRACT 203A
4. JKR DESIGN AND BUILD (DB 2010)
5. KLRCA STANDARD FORM BUILDING CONTRACT
6. CIDB BUILDING CONTRACT 2000
7. CIDB STCC RENOVATION AND SMALL WORKS
 PAM 1998 CONTRACT CLAUSE

Clause 15.1 has defined 'Practical Completion' as follows:

When the Architect is of the opinion that the works are practically
completed, meaning that the Contractor has performed and
completed all the necessary Works specified in the Contract and

the patent defects existing in such Works are "de minimis", the
Architect shall forthwith issue a Certificate of Practical Completion.

Notes:
• Completed works specified in
contract
• Patent defect to de minimis
 PAM 1998 CONTRACT CLAUSE

1 nail = Minor Defects

100 nails = Major Defects
PAM 2006 CONTRACT CLAUSE

Notes:
• Employer can have full use of work
• Fit for purpose
• Defect minor nature which can be
completed within reasonable time
• All requirement under contract
completed
JKR 203A CPC CLAUSE

Notes:
• Work completed as per contract
• Fit for purpose
• T&C completed
• Fit for occupation
• Connections of utilities
 DEFINITIONS
FIT FOR PURPOSE
something that is fit for purpose is good enough to do the job it
was designed to do

FIT FOR OCCUPATION

The building/ facility is fit to be use. Must it have CCC?

REASONABLE SKILL AND CARE

A contractual obligation to carry out works
or services with reasonable skill and care creates a performance
obligation which is analogous to the standard of
care in negligence.
JKR DB 2010 CPC CLAUSE

Notes:
• Work completed as per
contract
• Fit for purpose
• T&C completed
• CCC
• Connections of utilities
 WHEN DOES THE PROJECT COMPLETE?
Project Complete when it has achieve practical completion. The contract administrator certifies practical
completion when :
General / D&B Building Contract Small works
JKR 203A/DB2010 PAM 1998 PAM 2006 CIDB 2000 KLRCA CIDB RSP

Clause 39/44 Clause 15 Clause 15 Clause 20 Clause 15 Cause 2.62

Works are Completed When the architect Works are Under definition: Works Works are Completed Practical completion is
when: is of the opinion Practically completed when when: achieved when:
a) Work completed that Completed when a) Completion of the a) Work completed
as specified in works under the as specified in a) the work under this
a) the opinion of
contract on or a) the contractor contract contract on or contract is
the Architect,
before has performed b) equipment's before completion substantially
the Employer
completion date. and completed which requires a date. complete;
can have full
b) Government have all the license for b) Employer have b) and any minor
use of the
full, proper and necessary operation , such full, proper and outstanding work
Works for
beneficial use of works equipment eligible beneficial use of and any minor
their
the work for its specified in the for issuance of a the work for its defective work will
intended
intended contract and license in respect intended purpose. not cause major
purposes.
purpose. b) patent defects of its operation. c)Passed T & C disruption to the
c)Passed T & C existing in such b) Defects minor c) existence of d)Fit for Client when the
d)Fit for works are ‘de in nature minor outstanding occupation minor work is
occupation minimis’ work/ defects do e)Essential completed or
e)Essential not effect services (external rectified.
services (external functional use of work)
work) works and
c) For D&B ( CCC Practical
obtain and Completion
undertaking
letter)
 GENERAL EFFECT OF ISSUING CPC
Certifying practical completion has the effect of:

1. Releasing half of the retention (an amount retained from

payments due to the contractor to ensure that they complete
the works).
2. 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).
3. Signifying the beginning of the defects liability period.
 RELEVANCE OF PRACTICAL COMPLETION
For Contractors
•Certificate practical completion
obtain
•No longer liable for Liquidated
Damages
•Half retention becomes due
•Defect Liability Period
commences
•Insurance risks ends and
insurance maintenance period
commence
For Employers
•Period for finalization and
agreement of Final Account starts
•Possession of site handed over
back by contractor
•Occupation starts should CCC
have been obtain
For PM/ Project Consultant
•Fee Claim up to CPC
•Enter final Phase of Service
•PARTIAL AND SECTIONAL
COMPLETION
 WHAT IS PARTIAL POSSESION

Partial possession occurs when the

employer takes possession of part of the
works before the project has been fully
completed.
 PARTIAL POSSESION
Employer wishes to take possession and
occupy any part of the Works before CPC for the
completed parts

Employer cannot take possession

Consent from
Contractor
Employer can take possession
Withheld consent
16.2 without consent
Conditions
16.1 with consent a) Completion of work delay and
CNC issued
b) Such occupation does not effect if occupation would hinder
unreasonable disturbance to the completion
progress of the remaining works
Example
•would be if occupation
required the contractor to limit
the amount of noise or dust
16.1 Relevant event takes effect
created,
a) After 14 days- Arch issues partical CPC cert. with
•or if the contractor was
estimated value of occupied part
restricted from working on
b) DLP occur for occupied parts
mains services
c) LD reduce for occupied parts
•Or if occupation required the
d) Release of half moeity for value of occupied parts
maintenance of fire escape
e) When DLP end- issue CMGD for occupied parts
routes through the contractor's
f) When CMGD end- release of remaining half
working areas and such like.
moeity for value of occupied parts
 QUESTION
You are the architect for a residential project 10 unit high end bungalow. While
preparing for the tender document, your client has inform you that he wishes to
request contractor to complete one of the unit early and take partial possession
during construction for sales purposes . Advise the client on the best way to do
this? Give advantages of using your suggestion. (4 Marks)

Sample Answer:-

1. Advise client that partial possession is not suitable for this as contractor
obligation is to deliver the houses according to the completion date.
2. If he wants the unit to be handed early, propose to identify as sectional
for the unit in the contract
3. This will allow the unit for early completion date from the main contract.
4. The advantage is architect has better control for the completion of the
unit as it is treated as 2 separate contract and clear cut obligation for the
contractor.
 QUESTION
CAN CCC BE GIVEN FOR PARTIAL POSSESION. GIVE EXAMPLE? ( 4 marks)

Condition Example
CANNOT When partial possession is Employer wishes to part of
taken for a part/ the building /room/ space
space/room of a building to use for storage space or
that does not satisfy the retrofitting by other not
BP approval to be part of NSC or DSC>
completed

CAN When there is 2 or more Scope of contractor to

separate project on complete an apartment on
different land under the a piece of land and the
same contract with the clubhouse is on another
same completion date and piece of land where arch
BP submission was done obtain BP approval
separately. submitted separately for
both building
 WHAT IS SECTIONAL COMPLETION?

Sectional completion refers to a provision

within construction contracts allowing
different completion dates for different
sections of the works. This is common on
large projects that are completed in
sections, allowing the client to
take possession of the completed parts
whilst construction continues on others.
 21.0 QUESTION RELATED TO SECTIONAL COMPLETION

WHAT IS THE EFFECT OF SECTIONAL

COMPLETION?

According to clause 21.3 , Relevant event takes effect

a) Arch issue Certificate of sectional completion

b) DLP occur for sectional parts
c) End for claims on Liquidated Damages
d) Release of half moeity for value of section parts
e) When DLP end- issue CMGD for section parts
f) When CMGD end- release of remaining half moeity for value
of section parts
MUST SECTION COMMENCE TOGETHER WITH THE
MAIN WORKS?
1. NOT REALLY
2. IT CAN COMMENCE ANYWHERE IN THE CONTRACT AS LONG AS IT IS WITHIN
THE CONTRACT PERIOD.
3. IF IT IS OUT SIDE OF THE CONTRACT PERIOD, THE LAST DATE OF
COMPLETION WILL BE THE PRACTICAL COMPLETION DATE

CPC
MAIN CONTRACT PERIOD FOR RESIDENTIAL
Sec Comp.

MOCK UP UNIT
Sec Comp.

TNB SUBSTATION

CLUB HOUSE
 CAN SECTIONAL COMPLETION BE GIVEN CCC ?

SECTIONAL COMPLETION vs
CCC

YES NO

When section pre
determine in contract
Correspond to
Section identified in BP
approval
When section pre When section pre When section pre
determine in contract determine in contract determine in contract
involve separate land is for a
Does not correspond to unit or more
And separate BP
approval Section identified in BP part of a housing
approval development

PARTIAL CCC
CCC
Yes- to resubmit BP layout
plan to correspond to
contract section
Practical Completion Vs Partial Completion Vs Sectional
Completion

PRACTICAL PARTIAL SECTIONAL

COMPLETION POSSESSION COMPLETION
Situation All works have been event that was not event that was
completed as per specifically specifically provided for
contract envisaged and in the use of the
provided for when Sectional Completion
the contract was Supplement
entered into
Certificate Practical Completion Partial Completion Sectional Completion
issued
Value of Total Work Done an estimate of the values of the various
work value of the relevant sections defined in the
part of the works contract documents in
appendix – sectional
completion
 PROFESSIONAL PRACTICE TALK

RESEARCH SHARING SESSION:

MANAGING PRACTICAL
COMPLETION AND
THINGS TO CONSIDER

PART 2
 SARAWAK SUMMARY OF TOTAL DEVELOPMENT PROCESS
CONSTRUCTION PERMIT PROCESS
Register as a Apply planning Submission to Local authority FORM C FORM D FORM F
Qualified Permission to Building and Landscape Division, Engineering Notice of Notice of completion of setting out Application for the
Person with Department Land & Division, Public Health Division, Licensing commencement/resumpti issue of occupation
State Planning Survey (L&S) Division. on of building operations permit
Authority FORM E
submit Form A L&S Screen application Notice of completion of excavation for
BP APPLICATION FORM •Application of
through and forward to SPA for foundations
Ministry of consideration. occupation permit
Resource FORM A must be made by the
TECHNICAL AGENCIES
Planning and Divisional Land • Certificate of buildings/structural •person who submit
Comply all technical agencies requirement
Environment superintendent receive FORM B the building plan
& obtain all certificate of completion
decision from SPA and • Certificate of structure
delivers to Applicant • Fire
FORM G
• Water
Submission to technical agencies Issuance of OP
• Electricity
-Fire & Rescue Service Dept
• Sewerage
-Land & Survey Department

PROFESSIONAL
REGISTER PLANNING & LAND BUILDING PLAN COMMENCEMENT OF WORK OCCUPATIONAL PERMIT
DLP
CONSTRUCTION PERIOD-

APPLY DEVELOPER LICENSE / S&P Third Schedule: Progress Delivery of Vacant Defect
ADVERTISING PERMIT FORM B Billing Possession Liability
Period
HOUSING LAND &
FORM E (Options) BUILDING Form B
DEVELOPMENT • Housing Development’s Licence and Clause 20 Form B
PERMIT Advertisement and Sale Permit FORM C
Form C( SUBDIVIDED Form B (LAND &
(within 24 Month) Clause 22
• Housing Development’s Licence BUILDING) BUILDING) (18 Month)
PROCESS SUBDIVIDED
Construction 36 Month Construction 24 Month
• Advertisement and Sale Permit BUILDING Form C
Setting Up of Housing Developers • PART A SINGLE Form C
STOREY BUILDING Clause 25 & 26 (
Account & Pay Deposit • SCHEDULE OF Common Facilities) Clause 28
PAYMENT OF • PART B DOUBLE
(Within 36 Month) (18 Month)
PURCHASE PRICE STOREY BUILDING
• PART C THREE
STOREY BUILDING
• PART D SUB-
DIVIDED BUILDING

Submit Strata Superintendent Proprietor there after Establish

STRATA TITLES documents 6month coordinates: to pay all strata MC
PROCESS from S&P to Super • Survey cost subsidiary Sec 23
intendant ( Dept Land • Certified Plan incurred title shall
& Survey) • Fees to be paid be issued
 CONSTRUCTION PERMIT PROCESS

SARAWAK CONSTRUCTION PERMIT PROCESS PROCESS

PROFESSIONAL
COMMENCEMENT OF OCCUPATIONAL
PLANNING &
REGISTER BUILDING PLAN WORK PERMIT
LAND
CONSTRUCTION PERIOD-

Register as Apply planning Submission to Local authority FORM C FORM D FORM F

a Qualified Permission to Building and Landscape Division, Notice of Notice of completion of setting out Application for
Person with Department Land & Engineering Division, Public Health commencement/res the issue of
State Survey (L&S) Division, Licensing Division. umption of building occupation
Planning FORM E
operations permit
Authority L&S Screen Notice of completion of excavation
BP APPLICATION FORM
submit Form application and for foundations
A through forward to SPA for •Application of
Ministry of consideration. FORM A occupation permit
TECHNICAL AGENCIES
Resource • Certificate of buildings/structural must be made by the
Comply all technical agencies person who submit
Planning Divisional Land FORM B
requirement & obtain all certificate the building plan
and superintendent • Certificate of structure ( Reno.) of completion
Environment receive decision
from SPA and • Fire FORM G
delivers to Submission to technical agencies • Water Issuance of OP
Applicant -Fire & Rescue Service Dept • Electricity
-Land & Survey Department • Sewerage

PENINSULAR CONSTRUCTION PERMIT PROCESS -OSC 3.0

PRE CONSIDERATION COMMENCEMENT INTERIM FINAL

FOR DEVELOPMENT INSPECTION INSPECTION DEPOSIT CCC
CONSULTATION OF WORK
CONSTRUCTION PERIOD-

Collation of information Submission to OSC for • FORM B Certify Interim Final Inspection I Deposit CCC to
from technical agencies propose development • PDC 6, FORM Inspection PBAN, TNB & PBT/JKR LA, Developer ,
Water, Electric, MSIG Vol II G1-G21 TNB, BOMBA, Permohonan Sambungan LAM
Telecomunications, Land KM / BP/ Structure/ • Borang By PBAN, IWK, komunikasi.
Engineering/ Earthwork/ JKJ103, stages DOSH dan FORM F
Infrastructure/ Landscape JKR/PBT. Final Inspection II JPBM, FORM G1-G21
FORM A : Submission • Sijil tanah
DOSH, APP (IWK/MAJAARI) CLEARANCE
BP/ Structure • etc LETTER
•PROCEDURE OF CPC IN
CONTRACT
 MAPPING PAM CONTRACT 2006
PRE
CONSTRUCTION POST CONSTRUCTION
CONSTRUCTION

Interim cert.
(Cls 30.1)
Date of Completion Penultimate
Letter of Commencement POH 21 Days Date CMGD Final Cert.
(Cls 30.1 Cert. for
Award (Cls 21.1 & (Cls 21.1 & (Cls 15.6) (Cls 30.15)
and Appendix) NSC/NS
Appendix) Appendix) (Cls 30.13)
DLP

12 MONTHS 14 Days • 21 Days after

Any?
MC to submit: POH for
Require? Complete? Penultimate
• Works Programme within
21 Days after LOA (Cls 3.5) • 15.4 – DLP Cert, or
Dispute? Certificate • 28 Days after
commence.
1) Before CPC
• Performance Bond before Arch Instruction (Cls 2.2) •Mediation (Cls 35)
Practical • 30.6(c) – Release CMGD
Date of Commencement Completion ½ of RS in 14 (Cls 30.14)
(Cls 37.1) • Adjudication (Cls 15.2) Days.
(Cls 34.1) • 30.10 – MC to
Variation (Cls 11.1)
•Insurance Policies (as a (condition precedent to submit Final Acc
condition precedent to arbitration for disputes doc in 6 months.
under Cls 30.4 Set-off)
commence Works):
Cls 19.1 – Against injury to AI to expend PC/ Provisional Not Complete?
• Arbitration (Cls 34.5)
person and loss and/or damage Sum (Cls 11.4)
Certificate Non- LD
of property; 2) After CPC Completion (Cls 22.1 &
Cls 19.3 – For local workmen •Arbitration (Cls 34.5)
(Cls 22.1) Appendix)
not subject to SOCSO; Apply EOT (Cls 23.1 )
Cls 19.4 – For foreign Breach?
workers; and • Defaults by MC
Cls 20.A – CAR Insurance of Notice L&E (Cls 24.1) (Cls 25.1) Extended time?
• Default by Employer
New Bldgs/Works by (Cls 26.1) Certificate of New
Contractor, or Extension of Completion
Cls 20.B - by Employer, or
Cls 20.C – Existing Building
Sectional Completion Time (Cls 23.4) Date fixed
or Extension by Employer
Site Possession Issue Cert. of Sectional Completion (Cls 21.3). Partial Possession?
Separate:
(Cls 21.1) (a) Practical Completion & DLP (Cls. 15.0) Cert. of Partial DLP CMGD
BY: AR RIDHA RAZAK (b) Extension of Time (Cls 23.0) Completion commence Cls 16.1(e)
HANI AHAMAD (c) Liquidated Damages (Cls 22.0); and Cls 16.1(a) Cls 16.1(b)
(d) Release Half of Retention Sum (Cls 30.6)
PAM 2006 CONTRACT CPC CLAUSE
When whole
work practically
competed

15.2 Contractor
give notice to
ARCH

15.2 Arch inspect

within 14 days of
the notice

If work If work not practically

practically completed
completed

22.1 Arch issue CNC if work

not completed on
15.2(b)(ii) No Minor defect Completion date
works / minor Arch request written 15.2 (a) Architect give
defects undertaking to make written notice to Contractor
Date of written good and to complete with copy extended to the
notice works and defects of a Nominated Sub-Contractors
minor nature, stating the reasons for his
opinion

15.2(b)(i)The date CPC

shall be the date of Contractor to complete work
receipt of the in time specified by Arch and
contractor's written resend notice
undertaking
 MAPPING JKR 203A REV1/2010 CONTRACT
PRE CONSTRUCTION CONSTRUCTION POST CONSTRUCTION

1st Valuation Subsequent

(Cls 28.1) Valuation
(Cls 28.2)
Interim cert.
Date (Cls 28.3) Next Interim Date Final
Letter cert. CMGD
Commence Completion Cert.
of POH 30 Days (Cls 28.3)
(Cls 48.4)
(Cls 38.2) (Cls 28.6) (Cls 39.1) (Cls 31.3)
Award POH 30 Days

DEFECT LIABILITY PERIOD

12 MONTH 3 MONTH
Any? (from Expiry
MC to Site Possession
submit (Cls 38.1) Require? Complete? DLP or
CMGD)
-Work Dispute? DLP Commence
program MC to submit Arbitration Certificate (Cls 48.1) Final Certificate
within 14 -Performance bond/ SO Instruction (Cls 5.1a-i) (Cls 66) (only Practical
- state final balance
Performance commence after Completion
days fro MC submit Final due from the
Guarantee Sum CPC) (Cls 39.6)
SO Account Government to the
approval (Cls 13) Variation (Cls 24.1) breach? Ref: JKR 203S – Pind.3/2008) (Cls 31.1) Contractor or from
(Cls 12.1) -Insurance (Cls 15 Ref JKR-APK (Pind. 3/2008) -Default by MC the Contractor to the
and 18) (Cls 51) Not Complete? Government (Cls
-Default by Gov.
31.4)
If Gov Delay give Expand PC/ Provisional Sum (Cls 55) Certificate Non-
site possession (Cls 34) Completion LAD -Statutory
within 90 days, Compulsory (Cls 40.1) (Cls 40.2) Declaration (cls
within 14 days: termination ?
-National interest Ref: JKR 203X - Pind. 2/2008) 31.5)
-Proceed without Apply EOT (Cls 43.1) (cls 52)
L&E or terminate Ref: JKR-JKLM (Pind. 1/2009)
-Corruption
Extended time? Final Payment
(Cls 38.6) (Cls 53) Ref; JKR 66A (Pin.
Notice L&E (Cls 44.1) Certificate of Delay New 2/1999)
Mutual Termination
and Extension of Time Completion
REFERENCE: (Cls 50.3)
(Cls 43.1) date
• JKR 203A 1/2010
• BUKU PANDUAN Sectional Completion Ref: JKR.203 T - Pin. 5/2008)
PENTADBIRAN
KONTRAK KERJA Sectional Completion (Cls 41.1) : Separate
RAYA EDISI KETIGA
Site Possession Partial Possession?
(Cls 38.3) (a) Certificate of Practical Completion;
(b) Delay and Extension of Time; Cert. Partial DLP CMGD
(c) Liquidated Ascertained Damages; and Completion commence (Cls 42.1c)
(d) Defects Liability Period, (Cls 42.1) (Cls 42.1b)
BY: AR RIDHA RAZAK Ref: JKR 203W – Pind.1/2008
JKR 203A CPC CLAUSE
Works completed

39.2 Contractor
notify CPC

39.3 Within 14 days

receive notice, SO
Inspect

Complete Not complete

39.3(a) 39.3(b) SO Instruct to
SO Issue complete the works
CPC 40.0 CNC if not
completed on
completion date

Contractor to
complete work

Complete If failed
39.3(a) 5.3
SO Issue Employ other
CPC person and
recover
JKR DB 2010 CPC CLAUSE
Works completed

44.3 Contractor
notify CPC

44.4 Within 14 days receive

notice, PD inspect

Complete Not complete

44.4(a) 44.4(b) SO Instruct to
SO Issue complete the works
CPC 45.1 CNC if not
completed on
completion date

Contractor to
complete work

Complete If failed
44.4(a) 8.4
SO Issue Employ other
CPC person and
recover
 MAPPING KLRCA CONTRACT 2017
PRE
CONSTRUCTION POST CONSTRUCTION
CONSTRUCTION

1st Valuation Subsequent

(Cls 30.1a) Valuation
(Cls 30.1a)
Interim cert.
Date (Cls 30.1b) Next Interim Date
Letter of cert. CMGD Final Cert.
Commence Completion
Acceptance POH Subject to (Cls 30.1b)
(Cls 15.5) (Cls 30.13)
(Cls 21.1) GST or Not (Cls 21.2)
(Cls 30.1c) POH 21 Days

DEFECT LIABILITY PERIOD

12 MONTH 3 MONTH
Any? (from Expiry
MC to Site Possession
submit (Cls 21.1) Require? Complete? DLP or
CMGD)
-Work DLP Commence
MC to submit Dispute? Certificate
program (Cls 15.3)
Mediation
within 14 -Performance bond/ Arch Instruction (Cls 2.4) (Cls 35)
Practical
days fro SO Performance Completion MC submit Final
approval Guarantee Sum (Cls Arbitration (Cls 15.1) Account
(Cls 3.4a) 37.1a) Variation (Cls 11.4) (Cls 34) (only (Cls 30.10)
-Insurance (Cls 18,19 commence after CPC)
and 20)
CIPAA
Not Complete?
Others Expand PC/ Provisional Sum -(Cls 23A) EOT Certificate Non-
-(24A.0) L&E
-Cls 1.5 Safety (Cls 11.5) -(30A.0) Payment
Completion LAD
Procedures (Cls 22.1) (Cls 22.2)
-(36.2) Notice
-Cls 1.8 Suitability
and Maintenance of Apply EOT (Cls 23.1 ) breach?
Access Route -Default by MC
-Cls1.9 Protection of (Cls 25) Extended time?
the Environment -25.4 Bribery / Corrupt
Notice L&E (Cls 24.1) -Default by Employer Certificate of Delay New
-Cls1.10 Progress
(Cls 26) and Extension of Time Completion
Reports
(Cls 23.1) date
5.0 Setting Out of Sectional Completion
the Works
Site Possession Sectional Completion (Cls 21.3) : Separate Partial Possession?
(Cls 21.2) (a) Certificate of Practical Completion;
(b) Extension of Time; Cert. Partial DLP CMGD
(c) Liquidated Damages; and Completion commence (Cls 16.1h)
BY: AR RIDHA RAZAK (d) Defects Liability Period, (Cls 16.1) (Cls 16.1d)
(e) Release Retention sum
KLRCA CONTRACT
Works completed

15.2(a) Contractor
apply CPC

15.2a Within 14
days receive notice,
Arch Inspect

Complete Not Complete Arch Ignore

15.2(a)(i) Reject and give 15.2c If work
Issue CPC reason. deem
22.1 Issue CNC completed-
15.2(a)(ii) CPC deem
issued

Contractor to
complete work

15.2(b)(i) 15.2(b)(ii) 15.2(b)(iii)

Grant ex Employ Leave the
gratia time other work
to complete person
CIDB CONTRACT 2000
Works completed

20.2(a) Contractor
notify CPC

20.2b Within 14
days receive notice,
SO Inspect

Complete Not complete

20.2 (b)i 20.2 (b)ii
SO Issue SO Instruct to complete
CPC the works
26.2 CNC if not completed
on completion date

Contractor to
complete work

Complete If failed
20.2 (b)i 3.5 (b)
SO Issue Amount
CPC recoverable
•PREPARING FOR CPC
APPLICATION
 WHAT THE PROJECT TEAM NEED TO DO?

• JOINT INSPECTION
• CHECK ALL WORKS COMPLY TO
APPROVE PLAN & SALES
BROCHURE
• CHECK QUALITY AND
WORKMANSHIP
• REPORT TO CONTRACT ADMIN
FOR ANY SHORT COMINGS
• CHECK ALL CONTRACTURAL
DOCUMENT NEEDS IS
COMPLIED
COMPLETION OF WORK & HAND OVER OF SITE
CPC CHECKLIST
Important records
1. Practical completion
Application letter
2. Joint inspection record
3. Consultant
recommendation
4. Letter undertaking
5. All NCR closed
6. T&C completed
7. All Warranties & Manuals
forwarded
8. G1-G21 Signed with
clearance letter from
Technical Agency
SAMPLE CONTENT MC CPC APPLICATION LETTER
To Architect /SO

Notification for Certificate of Practical Completion

In reference to the above, we hereby append our written affirmation that we have fully complied
with all our obligations under the contract especially pursuant to clause 1.1 and that the patent
defects as mention under clause 15.1(ii) is to ‘de minimis’.

Therefore we request for the final inspection for the issuance of certificate practical completion
to be conducted on the _______.

Attached an undertaking letter as required under our condition of contract clause 15.1(i) 2 on
our full responsibility for the completion of any deviations and/or omission works under the
contract.
Your attention is widely appreciated

___________
Main Contractor
 CONDUCT JOINT INSPECTION
FINAL JOINT INSPECTION

Quality Control ESH CONTROL

Works Documentation Statutory Compile Compile

All works As built drawing, requirements/ H.D.A records on records on
completed as per Material test, & Shop requirements for Water, Noise, Inspection of
contract. drawing records in stage 3 Pollution schedule waste
No pending NCR order report facility on site

All Records in order

Yes No

 Sign off joint Inspection  Instruct Contractor to comply

 Sign of CPC when all works  MC may give undertaking letter to SO.
complied
 CONSULTANT RECOMENDATION
IT IS ESSENTIAL THAT THE SO OBTAIN
RECOMMENDATION LETTER FROM THE
RELEVANT CONSULTANT BEFORE
ISSUING CPC.

THE RELEVANT CONSULTANT ARE:

1. Architect – For Architectural Works

2. Structure Engineer – For Structure
Works
3. Civil Engineer – For Civil Works
4. Mechanical Engineer- For
mechanical Works
5. Electrical Engineer – For Electrical
works
6. Landscape Architect- For Landscape
works
 SAMPLE CONTENT MC UNDERTAKING LETTER
To Architect /SO

Letter of undertaking -compliance to clause 15.1 (2)

In reference to the above, we here by append our undertaking letter to

take full responsibility for the completion of any deviations
and/or omission works under the contract.

___________
Main Contractor
ALL NON COMPLIANCE REPORT CLOSE

Close out by COW or consultant

Accepted by SO
RECORDS TESTING AND COMMISIONING COMPLETED
CHECKLIST

• Doing Functional Testing

• Architectural – Building, Hydrant, Passive Fire req
• Mechanical – Sprinkler and Active Fire Systems,
Mechanical Equipment's and etc
• Electrical- Lighting Protection, circuitry check, lighting,
Equipment's, etc

• Field verify the operation of each commissioned system

• Function, Standards, Safety etc.
• Training review
• Operation and Manual verification
 ALL WARRANTIES AND MANUAL FORWARDED
Close out requirements in contract specs
As Built Drawings
• Most significant close out deliverable
• Example: As Built Surveys endorse by License
Surveyor

Operational & Maintenance manuals

• Organize into binders and give to owner
• Not sales info only O & M info

Warranties
• Written, original, signed warranties and guarantees from
all subs and suppliers to be Placed in O & M manual
G1-G21 SIGNED
 CLEARANCE LETTER

CONSIDERATION
FOR INTERIM FINAL DEPOSIT END
COMMENCEMENT
DEVELOPMENT INSPECTION INSPECTION CCC DLP
OF WORK

CLEARANCE RELATED G
LETTER FORM

BOMBA BOMBA YES G8, G9

DBKL PBT YES G12

IWK IWK IWK LOC G14, G15

SYABAS SYABAS SYABAS QT G13

DOSH DOSH YES NA

TNB TNB TNB YES G16

TELCO TELCO NA NA

LOC- Letter of Clearance

QT- Quality Test
 •THE CERTIFICATE OF
PRACTICAL COMPLETION
CERTIFICATE PRACTICAL COMPLETION
PAM 2006 JKR 203A
WHAT HAPPEN WHEN PROJECT NOT COMPLETED?
PAM 2006
In reference to clause 22.1 PAM Contract 2006
non completion can be define as :
1. If works not completed by Date Of
Completion , and
2. Architect is of the opinion that the same
ought reasonably so to have been
completed
3. Therefore work is not complete according to
the contract document
4. Architect can issue Certificate of Non
completion

The Effect
the Contractor shall pay or allow to the Employer
a sum calculated at the rate stated in the
Appendix as Liquidated Damages for the period
from the Completion Date to the date of Practical
Completion
CAN CONTRACTOR APPLY FOR ADDITIONAL TIME?
PAM 2006
Extension of Time

a) Extension of time is a provision made in

building contracts for architects to grant
extension of time to the completion date

b) The extension of time given is subject to

delay that occur due to certain specified
causes.

E.O.T. clause is put into the Contract to cater for

the delay caused by:-

1) Employer or the Architect

2) Neither Party (neutral event)

Example: Delay giving possession of site,

delay appointed NSC, Delay giving AI, Delay
supply material from own source, breach of
contract, late appointment of replacement
consultant, late giving entry to site.
•ISSUES IN CPC
 COMMON ISSUES IN CPC
1. WHERE EMPLOYER TAKE POSSESION OF A BUILDING, CAN CONTRACTOR
CLAIM FOR CPC?

2. CAN CPC BE ISSUED WITHOUT CONTRACTOR FULFILLING ALL HIS

OBLIGATIONS?

3. CAN CPC BE RETRACTED BY THE ARCHITECT DUE TO FINDINGS OF MAJOR

DEFECT DURING DLP?

4. WHAT HAPPEN WHEN CLIENT GIVE VP WITHOUT CPC?

5. CAN ARCHITECT WITHOLD CPC?

6. HOW DO YOU HANDLE A CONTRACTOR THAT APPLIES CPC WITH MANY

MAJOR DEFECTS?

7. CAN ARCHITECT GIVE CPC WITH CONDITIONS?

 OTHER CPC ISSUES

WHERE EMPLOYER TAKE POSSESION OF A BUILDING, CAN

CONTRACTOR CLAIM FOR CPC?

1. YES. CLAUSE 16.2 POSSESION WITHOUT CONSENT

2. Conditions
a) Completion of work delay and CNC issued
b) Such occupation does not effect unreasonable disturbance to
the progress of the remaining works
 PROJECT CANNOT BE CONTINUED

CAN CPC BE ISSUED WITHOUT CONTRACTOR FULFILLING

ALL HIS OBLIGATIONS?

1. NO – CPC ISSUED AS PER THE CONTRACT.

2. YES – WHEN BOTH PARTY MUTUALLY AGREE THAT

THE PROJECT CANNOT BE CONTINUED. CPC UP TO
THE STAGE.

3. YES – PROJECT CANNOT BE CONTINUED DUE TO

OTHER FACTORS.
 CPC BE REVOKE

CAN CPC BE RETRACTED BY THE ARCHITECT DUE TO

FINDINGS OF MAJOR DEFECT DURING DLP?

1. SOME SAY ….. CAN…..ITS THE POWER OF THE

ARCHITECTS

2. SOME SAY….NO …..ISSUEANCE OF CPC TRIGGERS

SITE HANDOVER, DLP, END OF LD AND RELEASE OF
RF.

3. ACCORDING TO EOT CLAUSE 23.10, ARCHITECT CAN

ONLY RELOCATE CPC DUE TO EOT WITHIN 3 MONTHS.
 CLIENT VP WITHOUT CPC

WHAT HAPPEN WHEN CLIENT GIVE VP WITHOUT CPC?

1. FROM VARIOUS FINDING FROM ADJUDICATORS, MANY MENTION

WAS ISSUED LATE. SOME EVEN NEVER ISSUED UNTIL CMGD.

2. WHAT IS THE STANDING?

- CLIENT TAKE OVER SITE AND GIVE VP TO PURCHASER.
- THE CONTRACT IS STILL IN PROGRESS
- CPC ISSUANCE IS COMPLETION OF CONTRACTORS OBLIGATION
ASPER THE CONTRACT.
- COULD THE ACT OF GIVING VP (THE DATE) DEFINES THE CPC
WITHOUT CONSENT BY CONTRACTOR THUS TRIGGER DLP?
 ARCHITECT WITHOLD CPC

CAN ARCHITECT WITHOLD CPC?

THERE ARE MANY REASONS WHY ARCHITECT WITHOLD CPC AS

FOLLOWS :

1. CONTRACTOR HAVE YET TO COMPLETE THE WORK

2. THE WORK QUALITY IS SHODDY
3. CONTRACTOR CANNOT FULFILL AL CONTRACTUAL
OBLIGATION.
4. CLIENTS INTERFERENCE
5. DISPUTE IN PRODUCT DELIVERY
6. ARCHITECTS PROCEDURE TO STRICT
7. S.O WITHELD CPC DUE TO GOVERNMENT REASONS.
8. MANY MORE.
 MISUSE OF CPC

HOW DO YOU HANDLE A CONTRACTOR THAT APPLIES

CPC WITH MANY MAJOR DEFECTS?

1. THERE WERE INSTANCES WHERE CONTRACTOR

PURPOSELY APPLY CPC WITH MANY PATENT DEFECTS.

2. CONTRACTOR USE IT AS A RECORD THAT THEY HAV

APPLY CPC AND ARCHITECT REFUSE TO CERTIFY THE
CPC.

3. THIS OCCURS WHEN CONTRACTOR KNOW LITIGATION

IS NEAR AND CREATING PAPER TRAIL FOR EVIDENCE.
 CPC WITH CONDITIONS

CAN ARCHITECT GIVE CPC WITH CONDITIONS?

1. THERE WERE REPORTS ON ARCHITECT GIVING CPC

WITH CONDITIONS TO CONTRACTOR.

2. WHAT CONDITION?

3. WHAT HAPPEN WHEN THE CONDITION NOT MET. CAN

CPC BE REVOKE AND LD BE IMPOSED?

4. IS IT UNETHICAL?
•CONCLUSION
 CONCLUSION
MANAGING WORK FOR CPC IS ESSENTIAL FOR PROJECT:

1. To allow contractor to plan and apply CPC in due time

2. Prevent Delay for the issuance of CPC
3. Prevent LAD/LD
4. For Commercial project, be careful as developer give VP with
CPC.
CONTRACTOR TALK SERIES

MANAGING PRACTICAL
COMPLETION AND THINGS
TO CONSIDER