CERTIFICATES
Definition
Interim Certificate
Penultimate Certificate
Practical Completion Certificate
Sectional Completion Certificate
Certificate of Making Good Defects
Final Certificate
Definition
• An architect's certificate is either a payment advice or a
confirmation of work done by the contractor.
• The Standard Form of Contract makes a payment certification
process compulsory in a building contract
• The employer and other stakeholders rely on the architects
professional judgment in this respect
• If a payment advice, the architect in turn relies on the
recommendation of the QS through a valuation
• However, the architect is not bound to accept the totality of
the QS recommendation.
• There are many types of architects certificate
Interim Payment Certificate
• This is very important in the contract process
• It ensures adequate cash flow for the contract
• It also ensures that payment is tied to work done
• However, interim certificates are payments on
account; they are not indications of total
acceptance of the work
• Interim certificates are usually prepared monthly
by the architect based on the recommendation of
the QS.
Contents of Interim Certificate
• Part 1: Serial Number, Date of Issue, Title of
Project, Name of Architect, Name and address of
contractor, Contract Sum, etc
• Part 2: Value of work done to date, Materials on
site, Materials off site, Advances, Variations,
Claims, Retention (usually 5%)
• Part 3: Certification
• Distribution: original to client, a copy each to
contractor and QS, and a copy for the file
Treatment of Down Payment
• Down payments are often made to mitigate the effect
of inflation
• It can be made without an architects certificate but
thereafter the architect should formalise the payment
through a retrospective certificate
• Down payments are treated as interest free loan to the
contractor which will be repaid with work done
• Some period of moratorium may be allowed to enable
contractor achieve reasonable level of work before
commencement of repayment
Penultimate Certificate
• This is the payment certificate before the final
certificate
• It usually follows the issuance of the
certificate of practical completion
• It usually includes the release of one moiety of
retention ie half of the retention
• It also includes all approved variations issued
to date
Practical Completion Certificate
• Practical completion is achieved when the works
as envisaged in the agreement have been
completed and free from any patent defect. Minor
defects do not negate practical completion.
• Practical completion means that the building is
ready for occupation
• When in the opinion of the architect, practical
completion is achieved, a certificate is issued to
that effect stating the date it was achieved
Implications of Practical Completion
• Commencement of Defects Liability Period
• Release of one moiety of the retention
• Commencement of period for final
measurement leading to final account
• Releases contractor from liability with respect
to the insurance of the work
• Matters for arbitration which were dependent
on practical completion can commence
Final Certificate
• Final certificate is issued after the final accounts have been
agreed
• This is a certificate that fully releases the contractor from
all obligations with respect to the contract. However, it
does not release the contractor from any action bordering
on fraud
• The final certificate is generally seen as evidence that the
parties have completed and discharged their obligations
under the contract.
• It is also intended to be the final financial statement on the
project
Final Account Procedure
• A Final Account in building contracts is the final agreed
statement of the amount of money to be paid at the end
of a building contract by the employer to the contractor.
• It is usually prepared by the Consultant QS. However, the
contractors QS can generate a draft which can then be
discussed with the Consultant QS.
• At the end of final account, both parties must agree on the
final account – the Consultant QS representing the
employer and the contractors QS representing the
contractor before the account is presented to the architect
Final Account Content
1. Initial Contract Sum
[Link]:
i. PC Sums
ii. Provisional Sums
iii. Variation (Omissions)
iv. Contingency
v. Other amounts
3. Additions
vi. Amounts for nominated subcontractors
vii. Adjusted provisional sums
[Link] (Additions)
ix. Contractors Profit and attendance on nominated subcontracts
x. Loss and Expences
