Construction Law/Provisional acceptance and Warranty
Dear Mr. Liaqat
I am CA for the Consultant of a large Oil&Gas project. The Contract is a bespoke one.The Contract allows Contractor to provisionally handover the Work (taking over) on portions however the main Provisional Acceptance certificate for the project is last portion one which its Date must not exceed the scheduled one for the whole project. Warrant period (defects liability period) is understood that it would start right after the main Provisional Acceptance (last portion one). I am attaching herewith some documents hopefully you have the time to go through.My question is: if the Contractor successfully handed over a portion of the Work provisionally (first portion) but the rest of the Work (the last portion) shall be handed over after few months upon which the main PAC will be issued, Warranty period will start and Warranty Bond will be submitted by the Contractor, How can the work related to the first portion be warranted by the Contractor during the period from its handing over date up to the date of whole project (last portion) handing over? can this be under performance bond guarantee or by a non-releasing the payment milestone which , according to Contract, due to the Contractor upon issuance of the Provisional Acc. Certificate ?
Sorry for delayed response
The provided info is limited as for as warranty bond is concerned and so i will be able to offer
general comments only.As i could understand from your question,it is quite appropriate to cover with valid performance bond as long as it is not voilation of a contractual expressed provision.
I will not recommend a delay in a due milestone payment.