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The PM Says We Have Not Reached Completion: Who Decides?

The Project Manager decides, but its decision isn't final. Under clause 30.2 of the NEC4 Engineering and Construction Contract (ECC) and of NEC3, the date of Completion is the Project Manager's decision, and its certificate is due a week or less after that date, and a completion dispute then goes through the contract's dispute route.

What decides who is right is the defined test, not the phrase "practically finished". It has two limbs: the work the Scope says is to be done by the Completion Date, and the notified Defects that would stop the Client using the works or Others doing their work. The Completion definition explains it in full. For related problems, see NEC questions answered.

If you are the Contractor: five steps with dates

  1. Write today saying what date you say Completion happened, and why. Ask for the certificate, and mention the one-week period.
  2. Make a dated evidence file. Include the Scope's completion list ticked off item by item, test certificates, inspection records and Defect closures.
  3. Ask the Project Manager to list what it says is stopping Completion. Each item should be either work the Scope requires by the Completion Date or a notified Defect that prevents use.
  4. Keep going. Finish the items you can without giving up your position. Say in writing that you are doing so with your date reserved.
  5. Diary the dispute period. Under Option W2 you can go to adjudication at any time. Under Option W1, a four-week limit runs from becoming aware of the action you dispute. Time limits for disputes sets these out by form.

Sample wording, in our own words

"We consider Completion was reached on [date]. The work the Scope requires by the Completion Date is complete, as shown in the attached schedule, and no notified Defect would prevent the Client using the works or Others doing their work. Please certify under clause 30.2. If you disagree, please identify the specific Scope item or notified Defect you rely on."

If you are the Project Manager

Decide on the test, and give reasons. A certificate can record a date earlier than the day it was issued, since the date is when the test was met, not when the paperwork was finished. Don't withhold Completion to keep pressure on for snags. Can the PM refuse Completion because of snagging? deals with that. Equally, don't certify just to be helpful if listed work is missing. The Client has a different route if it wants to use the works early: take over.

What turns on the date

ConsequenceEffect of a later date
Delay damages, if Option X7 appliesThey run longer, unless take over happened first
Take over (35.1)The two-week long stop starts later
Defects dateIt moves later, since it counts from Completion of the whole
Defect correction periods for Defects notified earlierThey start later (44.2)
Option X16 retentionThe halving comes later
Option C or D shareThe preliminary share at Completion of the whole (54.3 in NEC4; 53.3 in NEC3) moves
Cost of correcting Defects, on Options C to ECorrecting them after Completion is Disallowed Cost, so the date also shifts who bears that cost

A fictional example with illustrative figures: on a damages rate of £3,000 a day, a disagreement between 12 May and 26 May is worth £42,000 before anything else is counted. That is often enough to justify an adjudication on the one question.

Arguments you will probably hear

Project Manager saysContractor's answerWeak point in that answer
"The O&M manuals aren't in"Only counts if the Scope requires them by the Completion Date, or if the Scope is silent and they are needed for useIf the Scope lists them, size is irrelevant
"The Supervisor hasn't signed off"The contract doesn't make Completion conditional on sign-off, unless the Scope doesA failed required test may be a real obstacle
"The building isn't usable"Which notified Defect stops it?The Supervisor can still notify something now

Where the Scope gives no list, the fallback test about what is needed for use leaves room for honest disagreement, and Completion under NEC looks at how to reduce it. If real money rides on the answer, take advice on the wording of your own contract before you refer it.

See how this works in practice

Click through Contract Status with sample contracts: raise the notice, reply to it, and watch both sides of one record.

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This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.