The main issue is the use of Option C and when costs can be claimed for defective work, if no Completion Certificate has been issued?
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Firstly, in the TSC it is the Service Manager who administers the contract, not the Project Manager.
Secondly, secondary Option X19: Task Order does not require the Service Manager to certify Completion and hence the definition of the term Disallowed Cost makes no reference to the cost of correcting Defects after Completion, in fact clause 11.2(6) makes no reference to Defects at all.
Therefore for a cost to not form part of Defined Cost it must be capable of being classed as a cost related to Plant and Materials or other resources not used in Providing the Service after allowing for reasonable wastage / availability and utilisation etc.
Of course you are correct it is in deed the “Service Manager” !! Please note that Option X19 has not been used in this instance, so the word “task” refers to various items of maintenance work which are reactive in nature and ordered by the Service Manager on a daily basis. So on an Option C contract I assume therefore that costs associated with remedials/defective work are indeed included in the Defined Cost until such time that the Service Manager issues a Completion Certificate, which in this instance may be at the end of the agreed service intervals ie annually…thoughts??
There is no concept of a completion certificate in the TSC per se, it doesn’t exist in any of the clauses. So you can include the costs in the next application for payment after you have paid them.