Construction management: occupation and defects liability period

Revision as of 14:32, 8 February 2012

The occupation and defects liability period (equivalent to RIBA stage L1: rectification period) follows practical completion. It is the stage after the client has taken possession of the development for occupation when any defects are rectified and the final certificate is issued signifying that the construction works have been fully completed.

The tasks described below are based on the route taken by a project following a construction management procurement route where a construction manager is appointed early in the project as a consultant, and then takes on a management role for the construction of the project. The procurement route is unusual in that the works are carried out by trade contractors, contracted to the client but managed by the construction manager.

The defects liability period may be at different times for each trade contract. Individual final statements must be issued for each trade contract once defects have been rectified, and then a final certificate for the project once final statements have been issued for each trade contract.

Project plans for other procurement routes are available on the Designing Buildings Wiki home page.

NB This article is locked to preserve the logic and continuity of the full work plan. If you would like to propose changes or additions, click on the 'submit comment' button at the bottom of the page.

A. Starting the work stage.

1. The construction manager arranges a start-up meeting to plan the work stage. NB On construction management contracts, a separate certificate of practical completion is issued for each trade contract. This means that defects liability periods may be at different times for each trade contract.

B. Rectifying defects.

1. If the contract allows, the construction manager may review all relevant events that might be considered to have affected the completion date for each trade contract and may adjust their completion dates accordingly.
2. The client reports any defects in the works to the construction manager. On large projects the construction manager may set up a hot desk for responding to any complaints or to provide assistance required by the incoming occupants.
3. The construction manager takes advice on the action necessary to rectify the defects from the consultant team.
4. The construction manager and client agree a programme for rectifying defects in a way that minimises disruption to the client.
5. The construction manager instructs the trade contractors to rectify the defects.
6. The trade contractors rectify defects as instructed.
7. The construction manager issues regular payment notices to each trade contractor. The notices must be issued within five days of the dates for payment set out in the contract. If they intend that the trade contractors should be paid a different amount, they must issue a pay less notice giving the basis for the calculation of the amount that will be paid.
8. The client makes payments to the trade contractors by the final date for payment.
9. On large projects the construction manager holds a daily logistic meeting on site with trade contractor foremen to organise, schedule and co-ordinate on-site shared services such as deliveries and offloading, hoists and craneage, scaffolding and safety issues, rubbish clearance etc (some of the trade contracts may not have achieved practical completion).
10. The construction manager holds regular construction progress meetings with trade contractors. Construction progress reports should be prepared for the client.
11. At the end of the defects liability period for each trade contract, the construction manager arranges inspections of the works and prepares a schedule of defects which is issued to the trade contractor.
12. The construction manager agrees the programme for rectification of items on the schedule of defects with the client and trade contractors, which should in any event be rectified within a reasonable time.
13. If rectification works are significant, it may be necessary for the client to re-appoint the CDM co-ordinator (whose appointment may have terminated on certification of project completion) and it may be necessary to amend the health and safety file.
14. The trade contractor rectifies items listed on the schedules of defects and informs the construction manager.
15. The trade contractor provides the construction manager with information for the preparation of the final account.
16. The trade contractor and construction manager agree the final account for the trade contract.
17. The construction manager arranges final inspections of the trade contractors works and if satisfied issues a final statement for that trade contract. If any amounts are owing these should be paid by the final date for payment. This may include the release of any remaining retention if applicable. If the client intends to pay a different amount from that shown on the statement, then construction manager must issue a pay less notice giving the basis for the calculation of the amount they intend to pay.
18. The construction manager should take steps to protect completed work from any ongoing work.
19. The construction manager completes the building owner's manual.

NB In accordance with the Site Waste Management Plans Regulations, within three months of the completion of the project, the construction manager (in their role as principal contractor) must reconcile the planned handling of waste (as described in the site waste management plan) against what actually happened and provide an explanation of any differences.

C. Issuing the final certificate.

1. Once final statements have been issued for each trade contract, the construction manager co-ordinates preparation of the final report and issues the final certificate for the project.

NB issuing the final certificate will normally signify the end of the construction manager's and consultant team's appointments. If post-occupancy evaluation services are required, these may involve a new appointment.

• Next work stage: Construction management: post occupation evaluation.
• Previous work stage: Construction management: construction.
• Return to: Construction management: outline work plan.