Step 3: Completion of Works Statement, and Defect Liability Certificate
A final inspection shall be done by representatives of the respective
Division and Region along with the team from the supervising Consultant and the
Contractor. If it is found that no defects need correction, the Project Manager
shall get the consent of the Employer on a Completion of Works Statement. The Defect Liability Certificate shall be
issued to the Contractor and 1st half of Retention to be released
and final account to be settled including release of 2nd half of
retention after Tax Clearance Certificate, refer ▬►SBD (for medium
contract for construction of bridge)Section IV,GCC: Clause 55: Final Payment,
Clause 46: Retention
SBD
56. Final
Account
56.1 The Contractor shall supply the Project
Manager with a detailed account of the total amount that the Contractor
considers payable under the Contract before the end of the Defects Liability
Period. The Project Manager shall issue
a Defects Liability Certificate and certify any final payment that is due to
the Contractor within 60 days of receiving the Contractor’s account if it is
correct and complete. If it is not, the
Project Manager shall issue within 60 days a schedule that states the scope of
the corrections or additions that are necessary. If the Final Account is still unsatisfactory
after it has been resubmitted, the Project Manager shall decide on the amount
payable to the Contractor and issue a payment certificate.
47. Retention
|
47.1 The Employer shall retain
from each payment due to the Contractor the proportion stated in the SCC
until Completion of the whole of the Works.
|
|
47.2 One half of the retention shall be repaid
by the Employer to the contractor within 15 days upon expiry of Defects
Liability Period and the Project Manager has certified that all Defects
notified by the Project Manager to the Contractor before the end of this
period have been corrected.
|
|
47.3 The remainder of the
retention shall be paid by the Employer to the contractor within 15 days
after submission of an evidence document issued by the concerned Internal
Revenue Office that the contractor has submitted his Income Returns.
|
|
47.4 On
completion of the whole Works, the Contractor may substitute retention money
with an “on demand” Bank guarantee.
|