BTS: Holland Park Project + Practical Completion
PEP Solutions has been involved in a project at Holland Park for the last 10 months, providing an initial report and progress reports through to Practical Completion as a Financier QS.
Throughout the project, PEP has been monitoring the progress of construction, assessing payment claims and issuing payment certificates. The project has now reached Practical Completion.
BSM builders were very co-operative and it was a great job to be involved in. There was only one variation and extension of time claim on the job including the requirements around Fire Rating between the inter-tenancy walls, which extended to programme out to 10 months.
All in all, a great outcome for all parties and we are looking forward to the next project!
Please do not hesitate to be in touch if you require advisory around Quantity Surveying services, as Financier Quantity Surveying is one of our key services.
Builder: BSM Building
Financier: NAB
Practical Completion
Practical Completion is reached when the works have been completed in accordance with the building contract and any statutory requirement, with the exception of any minor defects or omissions, and is reasonably suitable to inhabit. A full inspection by the of the works must be conducted by the owner with the builder and if financed, the lender (or their representative). It is standard for a release of 50% retentions on Practical Completion (PC) and a further 50% at the end of the defects liability period.
*This varies depending on what your contract stipulates and would recommend before signing the contract, to read and understand what the conditions you are signing up to. Trust us, this happens far too often where two parties enter into a contract without fully understanding the obligations. Feel free to give PEP a call to discuss further as we can recommend what specifically to look out for – Retention clauses is one of them.
The defect liability period specified in the building contract and begins from the date of practical completion and runs for the length of time outlined in the contract. The builder is obligated to rectify any faults that occur during the defect liability period (typically) 12 months. PEP will also manage the defect liability period where necessary.
