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Final payment certificate: Issued upon the rectification of any defects identified during the defect liability period (typically a period after practical completion), this certificate signifies the final contractual sum due to the contractor.
What is the difference between practical completion and actual completion?
Substantial Completion occurs when a project is usable or occupiable, even if minor works remain unfinished. Practical Completion, on the other hand, means the project is fully functional for its intended purpose, with only minor defects.
What is a final certificate?
A final certificate is then issued by the superintendent certifying that defects ascertained during the defects liability period have been rectified. The final certificate is generally seen as evidence that the parties have completed and discharged their obligations under the contract.
What is the difference between penultimate payment certificate and final payment certificate?
Penultimate Certificate issued when Practical Completion is achieved. This releases half the retention money to the contractor along with money owed as per interim certificate. Final Certificate issued at end of rectification period, releasing retention (subject to all being well with site).
What does IPC mean in construction?
Interim Payment Certificate: An IPC is a document that is issued by the owner of a project (or their representatives) to the contractor. It certifies that the contractor has completed a certain amount of work and is entitled to receive payment for that work.
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