Completion Agreements

Snagging refers to a procedure by which the owner or owner`s representative verifies the defects that the contractor must correct before the final payment. The British Consumer Organisation What? notes that the most common problems encountered by the residential real estate survey are generally related to the completion of cleaning, tiles, baseboards and exterior masonry. [26] This type of construction contract is an alternative to lump sum contracts. It allows flexibility and transparency for the owner and reduces the risk for a contractor, because a Cost Plus construction contract guarantees them a profit. For construction management contracts, a separate completion date must be set for each commercial contract. Once all commercial contracts are certified as virtually concluded, the site manager issues a certificate or project conclusion. The same applies to management contracts where each construction contract must be processed individually. In order to reliably assess the outcome of a contract, the entity must be able to make a reliable estimate of the total contract proceeds, the closing phase and the cost of concluding the contract. [IAS 11.23-24] The terms of the contract are a specified period (a period or a certain period) during which a contract must be concluded.3 min read From the developer`s point of view, the certificate issued under the construction contract should be considered the required certificate in accordance with the lease agreement, so that the completion of the work is done under both the construction contract and the lease agreement. If certification is not carried out simultaneously, both within the framework of the construction contract and the lease agreement, the proponent risks various certifyers with conflicting views One of the general points of contention is what the project means “completion.” Work contract concepts often contain terms such as “final completion,” “simple completion” or “essential completion,” without taking them into account.

An important finding is considered the completion phase when the project can be used by the owner for the intended purpose.