Construction Law/Final Account Period - FIDIC 1987
I am working in a project (contract based on FIDIC 1987), and the taking-over certificate was issued on June 26 backdated to June 5 (the 21-days period for the Engineer to prepare the TOC according to sub-clause 48.1).
Now, i want to know when the 84-days period for the contractor to submit the final accounts shall start? Sub-clause 60.6 states that "not later than 84 days after the issue of the Taking-Over Certificate in respect of the whole of the Works, the Contractor shall submit to the Engineer...".
The 84-days shall start from the date of issuing the TOC (June 26) or the actual date of the TOC - the substantial completion date (June 5)? Please advise
Upon completion of the Project (which Taking Over Certificate is the base date), the Contractor has to submit "Statement at Completion" not later than 84 days after issue of TOC. This date starts from the date of TOC and ends after 84 days, meaning that you can submit your bill any time after TOC has been issued. Your maximum limit is 84 days.
When your Defects Liability Period ends, then it is time for submission of your "Final Bill", which must cover all expenses, work done during defects liability period, claims, etc. and your maximum period for final Bill is 56 days after issuance of Defects Liability Certificate.
Regarding your question, let us go through Sub-Clause 48.1, which stipulates that,"When the whole of the Works have been substantially completed ..... the Contractor may give a notice to that effect to the Engineer, with a copy to the Employer, accompanied by a written undertaking to finish with due expedition any outstanding work during the Defects Liability Period. Such notice and undertaking shall be deemed to be a request by the Contractor for the Engineer to issue a Taking-Over Certificate in respect of the Works. The Engineer shall,within 21 days of the date of delivery of such notice, either issue to the Contractor, with a copy to the Employer, a Taking-Over Certificate, ( stating the date on which, in his opinion, the Works were substantially completed in accordance with the Contract ), or give instructions in writing to the Contractor specifying all the work which, in the Engineer's opinion, is required to be done by the Contractor before the issue of such Certificate. The Engineer shall also notify the Contractor of any defects in the Works affecting substantial completion that may appear after such instructions and before completion of -Over Certificate within 21 days of completion, to the satisfaction of the Engineer, of the Works so specified and remedying any defects so notified.
As you may see above, on TOC, the Engineer has to indicate a date which the Works were substantially completed in accordance with the contract and it is your date which your time for submission starts.