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Certificate Of Practical Completion Template for New Zealand

A Certificate of Practical Completion is a formal document used in New Zealand construction projects to certify that the contracted works have reached a state of practical completion. This document, governed by New Zealand construction law including the Construction Contracts Act 2002 and Building Act 2004, marks the point at which the works are substantially complete and capable of being used for their intended purpose, despite possibly having minor defects or omissions. It triggers several contractual mechanisms including the commencement of the defects liability period, release of retention monies, and transfer of possession to the principal.

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What is a Certificate Of Practical Completion?

The Certificate of Practical Completion serves as a crucial milestone document in New Zealand construction projects, marking the substantial completion of contracted works. It is typically issued when the works are complete enough for the principal's use, even if minor defects remain. This certificate is fundamental in triggering various contractual mechanisms including the transfer of possession, commencement of the defects liability period, and often the release of retention payments. Under New Zealand law, particularly the Construction Contracts Act 2002 and relevant building regulations, this document carries significant legal weight and must be carefully prepared to protect all parties' interests. The certificate should clearly document any remaining minor defects or outstanding works, while confirming that the major contractual obligations have been met.

What sections should be included in a Certificate Of Practical Completion?

1. Project Identification: Details of the construction project including project name, location, and contract reference number

2. Parties: Identification of the principal, contractor, and contract administrator/engineer issuing the certificate

3. Works Description: Brief description of the works that have been completed under the contract

4. Certification Statement: Formal statement certifying that practical completion has been achieved, including the date of practical completion

5. Defects Liability Period: Specification of when the defects liability period commences and its duration

6. Outstanding Works: List of minor defects and outstanding works that need to be completed during the defects liability period

7. Signatures: Space for relevant parties to sign and date the certificate

What sections are optional to include in a Certificate Of Practical Completion?

1. Excluded Areas: Used when practical completion applies to only specific areas or portions of the works

2. Conditions: Any specific conditions attached to the practical completion certificate

3. Warranties: Reference to warranties that commence from the date of practical completion, used when specific warranties are a key part of the contract

4. Health and Safety Confirmation: Confirmation that all health and safety requirements have been met, used for complex projects or when specifically required

5. As-Built Documentation Status: Status of as-built drawings and documentation, used for complex projects requiring detailed documentation

What schedules should be included in a Certificate Of Practical Completion?

1. Schedule 1 - List of Outstanding Minor Defects: Detailed list of all minor defects and incomplete works, including agreed completion dates

2. Schedule 2 - Photographic Evidence: Photographs documenting the current state of the works and any noted defects

3. Schedule 3 - Required Documentation: List of all documentation provided or still required (e.g., warranties, manuals, as-built drawings)

4. Appendix A - Relevant Certificates: Copies of relevant compliance certificates, producer statements, or other technical certificates

5. Appendix B - Inspection Reports: Final inspection reports or references to them

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

New Zealand

Sector

Education

Cost

Free to use

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