Their is no sectional completion in the contract, however the Employer requires to “Take over” and use sections of work that are substantially complete. The PM has provided a “Take over” certificate. Should the PM also issue a CE to establish “Sectional Completion” dates?
No. Sectional Completion is covered by option X5, whilst take-over is covered by core clauses 35.
They are separate things, albeit they might interact would with each other IF X5 had been specified and the section was being taken over early.
Many thanks for your response, however as I had noted Sectional Completion “Option X5” had not been used in the contract. We have subsequently agreed that the Employer will Take over the works in sections, should a CE be issued to change the contract to allow X5 to be included?
No, the PM and Employer have no power under the contract to add in X5.
However, you can do it by a Supplementary Agreement between the Employer and Contractor which amends the contract you signed up to.
I agree with Jon. Take note that defects date should also be amended in relation to the proposed sectional completion.
After further research I have found in nec3 guidance notes 2005; clause 35.2.
“if the Employer uses part of the works before completion has been certified, he takes over that part on the date he uses it and a Compensation Event occurs”
Thanks, that is really the point that I am trying to establish is that the defects correction period commences on the date Take over is certified for the section of work?
It’s a compensation event under Clause 60.1(15), but that really just means that the Employer becomes liable for any damage to the works after they have been taken over. If defects are notified after take over, the defects correction period only starts when the Employer gives the necessary access, but I can’t see that the defects date as such is affected - from what I can see, the defects date is still the same number of weeks after Completion of the whole of the works.
Dave, you are correct, much to the annoyance of contractors as on a big project, they might have liability for a handed over section for yearS.