Chapter 17 COMPLETION

Flowchart Description Action By Reference

1 1. Receipt of notice from -

Contractor

2. Final Inspection. PT
2

3. Works (or Section) is -

practically completed for
No
3 all purposes of the
Contract?
Yes

4. Issue instruction to rectify SOR

4
defective works, if any

5. Issue Certificate of SOR

Practical Completion and
5 Hand over the Works to
Client-Agency

6. Release of 50% of SOR/CAO Refer Chapter

6 Performance Bond 19
10- -Final Account &
Payment
Final Certificate

Flowchart 17.1 Completion

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 Chapter 17 COMPLETION

17 COMPLETION

17.1 INTRODUCTION

This chapter provides:

x An overview of the completion provisions and procedure for works contracts

x The standard forms of contract use for DID projects

17.2 PROCEDURES

Please refer to Flowchart 17.1 Completion.

Action By
Step Procedures / Tasks
/ Reference
1 Receipt of notice from Contractor

Contractor issue notice that the Works are all practically

completed and ready for Final Inspection
2 Final Inspection Action by:
PT
Carry out Final Inspection especially mechanical and electrical
installation works to determine Works are practically completed
3 Works (or Section) is practically completed for all purposes of
the Contract

Practically completed meaning, the Contractor has performed

and completed all the necessary Works specified in the
Contract and the patent defect existing are minor
4 Issue Instruction to rectify defective works; if any Action by:
SOR
If necessary; issue instruction to rectify defective works that
can effect the issuance of Certificate of Practical Completion
5 Issue Certificate of Practical Completion and Hand over the Action by:
Works to Client-Agency SOR

If two (2) is acceptable, than issue Certificate of Practical

Completion and thus the Works are handed over to the Client-
Agency.

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 Chapter 17 COMPLETION

Action By
Step Procedures / Tasks
/ Reference
6 Release of 50% of Performance Bond Action by:
SOR/CAO
When CPC is issued,

(a) Release 50% of the Performance Bond; or

(b) Release 50% of the Performance Guarantee Sum,

whichever is applicable.

Where the Contractor submitted Performance Bond, then

release the 50% only after the Contractor has submitted a new
bank/insurance guarantee for the remaining 50%.

17.3 COMPLETION

When in the opinion of the S.O that the Works are practically completed, meaning that the
Contractor has performed and completed all the necessary Works specified in the Contract and the
patent defects existing in such Works are minor than the S.O shall issue Certificate of Practical
Completion.

The issuance of Certificate of Practical Completion indicates the start of the Defects Liability Period.

17.4 PRACTICAL COMPLETION

In determining whether the Works has reached practical completion, the S.O must consider the
following questions:

a) Has the Works been completed in accordance with the Contract?

b) Is defective work substantial?
c) Will the making good of defects cause undue inconvenience to the occupants or users?

The Contractor should notify the SO/PT when he considers the Works is Practically Completed, to
such a stage that it will perform the functions for which it is constructed, or may be occupied and
used.

A joint inspection must be held where the Contractor, SOR/PD, PM or other involved should attend.
Where the Works has been completed to a stage as meets the criteria specified above, the Certificate
of Practical Completion may be issued. Where the criteria specified above are not met, the
outstanding and defective works must be identified and a list if the same prepared and forwarded for
the action of the Contractor. This process must be repeated until the criteria specified are met.

The original copy of the Certificate of Practical Completion must be issued to the Contractor. Copies
of the same must also be distributed to the parties listed in the Certificate and in addition to all
others involves in the Contract.

The Defects Liability Period commences from the date of practical completion stated in the Certificate
of Practical Completion. Notwithstanding the issue of Certificate of Practical Completion, all defective
works have to be made good by the Contractor when the S.O issue instruction; if any. A reasonable
time must also be specified for the Contractor to execute and/or make good the same.

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When CPC is issued; then 50% of the Performance Bond can be released to the Contractor and in
turn Contractor to issue new Performance Bond guaranteeing the remaining sums. If Performance
Guarantee Sum is used, then 50% of the sum may be released to the Contractor upon issuance of
the CPC.

17.5 SECTIONAL COMPLETION

The Conditions of Contract contains provisions, which allows the Government to require the Works to
be completed in sections or parts. Where this is required, the sections or parts must be identified and
the measure of Liquidated and Ascertained Damages for each must be specified in the tender and
contract documents.

Where sectional completion of the Works is specified, the provision of the Contract as regards the
Certificate of Practical Completion, Delay and Extension of Time, Liquidated and Ascertained
Damages and the Defects of Liability Period apply as if each section or part is the subject of a
separate and distinct contract between the Government and the Contractor.

17.6 PARTIAL OCCUPATION

Prior to the practical completion of the whole Works, the Government may but with the consent of
Contractor, take possession of and occupy any part of the completed Works.

Where any part of the Works is taken possession of and occupied by the Government prior to
completion of the whole of the Works, the following apply:-

a) A Certificate of Partial Occupation must be issued within seven (7) days of the taking
possession and occupation of the part of the Works. The Certificate must state the
estimated value of the part of the Works taken possession of and occupied.

b) The Defects Liability Period for the part of the Works taken possession of and occupied
commences on the date the Government takes possession of and occupies the same.

c) The Liquidated and Ascertained Damages specified in the Contract is reduced in the
proportions which the value of the part taken possession of and occupied bears to the
Contract Sum.

d) The provisions of the Contract as regards of insurance and release of the Performance
Bond are not affected.

17.7 HANDING OVER

Upon the issue of the Certificate of Practical Completion, the Government takes over the Works and
the Contractor cease to be responsible for loss and/or damage to the same other than loss and/or
damage caused by or arising from defective work.

For the purpose of handing over the Works to the Government, a joint inspection of the Works must
be held and the keys to the Works handed over.

The Government must also be advised of the operation and maintenance requirements of the Works
including those relating to mechanical and electrical installations.

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17.8 SUBMISSION AND REQUIREMENTS NECESSARY FOR COMPLETION

Notes : Please refer to the DID Manual Volume 11 - Construction Management, Chapter 17

17.9 REFERENCE DOCUMENTS

Please refer to Volume 10A for the standard reference or sample documents for the procedures or
processes outlined in this Chapter.

x JKR 203S : Certificate of Practical Completion

x JKR 203W : Certificate of Partial Occupation
x Perakuan Serahan Kerja Siap
x Perakuan Serahan Kerja Siap Berbahagian

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STANDARD FORM OF CONTRACT

(This page is deliberately left blank)
1) PRACTICAL COMPLETION

A) BASED ON PWD FORM 203/203A (REV. 10/83)

B) BASED ON PWD FORM 203/203A (REV. 2007)
C) BASED ON PWD FORM DB/T (2002 EDITION)
D) BASED ON PWD DB (REV. 2007)

2) SECTIONAL COMPLETION

A) BASED ON PWD FORM 203/203A (REV. 10/83)

B) BASED ON PWD FORM 203/203A (REV. 2007)
C) BASED ON PWD FORM DB/T (2002 EDITION)
D) BASED ON PWD DB (REV. 2007)

3) PARTIAL OCCUPATION

A) BASED ON PWD FORM 203/203A (REV. 10/83)

B) BASED ON PWD FORM 203/203A (REV. 2007)
C) BASED ON PWD FORM DB/T (2002 EDITION)
D) BASED ON PWD DB (REV. 2007)

4) HANDING OVER

A) BASED ON PWD FORM 203/203A (REV. 10/83)

B) BASED ON PWD FORM 203/203A (REV. 2007)
C) BASED ON PWD FORM DB/T (2002 EDITION)
D) BASED ON PWD DB (REV. 2007)

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 Chapter 17 COMPLETION

APPENDIX 17A CHECKLIST FOR THE PREPARATION OF CERTIFICATE OF

PRACTICAL COMPLETION (SENARAI SEMAKAN PENYEDIAAN
PERAKUAN SIAP KERJA)
TAJUK
PROJEK
Tarikh Tarikh
Untuk Tarikh Siap
Nama Pegawai Diberi Diterima
Tindakan Semakan
Kepada Oleh
PMK 1
PMK 2
AK*
BIL. KETERANGAN PMK1 PMK2 AK* ULASAN

1. Borang Perakuan Siap Kerja Tandakan (9)

selepas
Borang yang digunakan ialah borang
semakan
JKR203S yang terkini.
Muka Depan
2. KERAJAAN bermaksud 'KERAJAAN
MALAYSIA' bagi projek Persekutuan atau
'KERAJAAN ............ bagi projek Negeri.

3. Rujukan - masukkan no. fail projek

Pegawai Penguasa.

4. Pejabat - masukkan Pejabat Pegawai

Penguasa atau Wakil Pegawai Penguasa.

5. Tarikh - iaitu tarikh ditandatangani oleh

Pegawai Penguasa atau Wakil PP.

6. Kepada - Nama dan alamat Kontraktor

hendaklah sama seperti dalam dokumen
kontrak.

7. Kelas - mengikut kelas lesen pendaftaran

kontraktor dalam dokumen kontrak.

8. Kontrak No. - hendaklah sama dengan

yang terdapat dalam dokumen kontrak.

9. Kontrak Untuk - Nama projek sama

seperti di dalam dokumen kontrak.

10. Pastikan samada kerja tersebut siap

sebahagian atau keseluruhan dan
potong yang tidak berkenaan.

11. Siap pada - Nyatakan tarikh siap sebenar.

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BIL. KETERANGAN PMK1 PMK2 AK* ULASAN

12. Ambil milik pada - pastikan sehari selepas
tarikh siap.

13. Tempoh Tanggungan Kecacatan pada -

sama dengan tarikh siap kerja sehingga
tamat tempoh tanggung kecacatan
seperti yang dinyatakan dalam dokumen
kontrak.

14. Tempoh berakhir 6/12/24* bulan dari

tarikh di atas. *Yang mana berkenaan,
mengikut tempoh yang tercatat di dalam
Lampiran Kepada Syarat-syarat Kontrak.

15. Tandatangan Pegawai Penguasa / Wakil

PP projek berkenaan mengikut kontrak.

16. Nama Penuh dan Jawatan - Pegawai

Penguasa / Wakil PP yang berkenaan.

Tandatangan Pegawai Semakan Tandatangan Pegawai Pengesahan Tandatangan Kualiti Audit

Tarikh Selesai Tugasan: Tarikh Selesai Tugasan: Tarikh Selesai Tugasan:

* Jika berkenaan

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