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Construction Law/% deducted from Taking over Certificate against snag list

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Question
Hello,

Should I grant the contractor 100% of every item of the contract in the taking over certificate, leaving the snag list value to be covered by retention money/performance bond?

Answer
Dear Emad,

Thanks for your questions.

I really like your question, so short and yet direct.

My answer is yes. the reason is that, at taking over certificate, it is assumed that, either that the works has been substantially completed and has passed all the tests either in parts or whole. As such, you either pay substantial payment for all works that have been satisfactorily completed while the retention on such payment would be retained for any remedial work / snags. However, if in your opinion, the retention money would be insufficient to cover the amount for executing the volume of the works remaining, remedial works and others, then, it becomes obligatory on your part, to limit whatever payment you want to certify on taking over certificate to such that would protect your client in case the Contractor fails. Alternatively, do not forget also, that, you are also having the performance bond with you which can be claimed in case of any default.

Hope this clears your doubt?

Thanks.

Femi

Construction Law

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Femi Alofe

Expertise

I can answer all questions relating to the followings: 1. Contract Administration - variations, contract clauses interpretation, all post contract procedures, valuations and certificates questions, extension of time issues and prolongation cost matters. 2. Contract Practice - Any questions regarding forms of contract like JCT, FIDIC & other Bespoke forms. 3. Quantification, measurements and Estimating questions 4. Contracts and construction law questions and dispute resolutions problems. 5. All FIDIC Conditions of contracts

Experience

Out of my 24 years experience in construction industry, i have the following specific experience: 1. Contract Administration - 15 years in contract administration with over 10yrs in Managerial positions covering africa and the middleeast. 2. Contract Practice - 15 years experience with over 10yrs in Managerial and expert positions covering africa, north america and the middleeast. 3. All pre-contract procedures, Tendering, Quantification, measurements and Estimating questions - 20 years experience. 4. Contracts and construction law questions and dispute resolutions problems - 15 years experience with over 10yrs in Managerial and expert positions and 5 years expert witness and active practice in arbitration proceedings covering africa and the middleeast.

Organizations
1. FAIQS - Fellow, Australian Institute of Quantity Surveyors, Australia 2. FRICS - Fellow, Royal Institution of Chartered Surveyors, UK 3. CCP - Certified Cost Professional AACEI, USA 4. PQS - CIQS, CANADA 5. ACIArb. - CIArb, UK 6. MNIQS - NIQS, NIGERIA 7. RQS - QSRBN, NIGERIA

Publications
1. AACEI RP on Estimating, 2010

Education/Credentials
1. B.Tech (QS) 2. RICS professional course, CEM - UK 3. MSc , UK NARIC 4. Professional Doctorate ( to commence 2016)

Past/Present Clients
1. Larsen & Toubro Ltd, Dubai UAE 2. Larsen & Toubro (oman) LLC 3. Archi + Web consortium, Abuja Nigeria 4. George Dike & Associates, Minna Nigeria 5. Public works Authority (Ashghal), Doha Qatar

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