Question 2 Feb 2022

QUESTION 2 FEB 2022
a) During the second month of twelve months of defects liability period, a bad leakage
was discovered on the flat roof. The Architect issued an instruction and the
Contractor subsequently remedied the leakage. However, further leakage appeared in
the seventh month which caused the Architect to issue similar instruction to the
Contractor. The Contractor replied that he planned to repair the leakage at the end of
the Defect Liability Period. In the tenth month, the leakage became worst, but on
further notification the Contractor gave the same reply. Advise the Architect on the
matter. (10 MARKAH)
It is essential to remember that the advice provided here is general in nature, and the
Architect should always refer to the specific terms and conditions of the contract, consult
legal experts if necessary, and act in accordance with applicable laws and regulations
governing construction contracts in their jurisdiction.
1. Review the Contract: The Architect should carefully review the terms of the
contract, especially the provisions related to the defects liability period, warranties,
and responsibilities of the Contractor for rectifying defects.
2. Inspect the Defect: The Architect should conduct a thorough inspection of the
leakage issue to understand the severity, potential causes, and impact on the
property.
3. Check the Instruction Issued: Verify that the previous instructions issued to the
Contractor were clear and unambiguous in addressing the leakage issue.
4. Document Communication: Ensure that all communications with the Contractor,

including instructions, replies, and notifications, are properly documented in writing,
preferably through formal letters or emails.
5. Notify the Contractor Again: In light of the worsening leakage problem, the
Architect should issue a new formal notification to the Contractor, clearly explaining
the urgency of the situation and the need for immediate action.
6. Request Immediate Remediation: The Architect should request the Contractor to

remedy the leakage issue promptly and inform them that further delays are
unacceptable due to the severity of the problem.
7. Invoke Contractual Provisions: If the Contractor remains unresponsive or unwilling

to take timely action, the Architect may need to invoke specific provisions in the
contract related to non-compliance, default, or breach of contract.
8. Involve the Client or Project Owner: If the situation persists and the Contractor
continues to neglect their responsibilities, the Architect may need to involve the client
or project owner to address the issue and seek resolution.
9. Consider Legal Options: If all attempts to resolve the matter fail, the Architect may
need to consult legal counsel to explore the available legal remedies, including
arbitration or other dispute resolution methods outlined in the contract.
b) Explain five (5) importances of the Certificate of Practical Completion according to
PAM 2018 Standard Form of Contract.
1. Handover and Use of the Works:
The Certificate of Practical Completion serves as official acknowledgment that the

construction works, or a specified portion of them, are substantially complete and fit
for their intended purpose. It marks the point at which the Contractor's obligations are
fulfilled to a degree that the project can be handed over to the Employer for beneficial
use. The CPC allows the Employer to take possession and start using the completed
works, even though minor defects may still exist.
2. Commencement of Defects Liability Period:
Upon issuance of the Certificate of Practical Completion, the Defects Liability Period
begins. During this period, the Contractor remains responsible for rectifying any
defects or issues that arise in the completed works. The length of the Defects Liability
Period is usually stated in the contract, and it provides the Employer with added
assurance that any problems discovered after practical completion will be addressed
by the Contractor at their expense.
3. Release of Retention Sum:
In many construction contracts, a percentage of the contract sum (retention sum) is

withheld from the Contractor as security against the satisfactory completion of the
works. The issuance of the Certificate of Practical Completion typically triggers the
release of a portion of this retention sum. This provides financial relief to the
Contractor and encourages timely completion and rectification of any remaining
defects during the Defects Liability Period.
4. Claims for Extension of Time and Loss and Expense:
The CPC is an important milestone for both the Contractor and the Employer to
assess the overall progress of the project. It allows the Contractor to claim for an
extension of time if they faced delays caused by circumstances beyond their control.
Additionally, it marks the end of the period for the Contractor to claim any additional
payment for the work they have done, especially for situations where they incurred
loss and expense due to variations or other relevant events.
5. Trigger for Practical Completion Certificate:
Following the issuance of the Certificate of Practical Completion, the next significant
milestone is the issuance of the Practical Completion Certificate (PCC). The PCC
confirms that all construction works have been completed, including the rectification
of any defects identified during the Defects Liability Period. The issuance of the PCC
officially marks the end of the project and is often a prerequisite for releasing any
remaining retention sum and finalizing the contract account.

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QUESTION 2 FEB 2022

4. Document Communication: Ensure that all communications with the Contractor,

6. Request Immediate Remediation: The Architect should request the Contractor to

7. Invoke Contractual Provisions: If the Contractor remains unresponsive or unwilling

1. Handover and Use of the Works:

The Certificate of Practical Completion serves as official acknowledgment that the

2. Commencement of Defects Liability Period:

3. Release of Retention Sum:

In many construction contracts, a percentage of the contract sum (retention sum) is

4. Claims for Extension of Time and Loss and Expense:

5. Trigger for Practical Completion Certificate:

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