Sectional

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SECTIONAL

COMPLETION/P
ARTIAL
COMPLETION
DIPLOMA OF QUANTITY
SURVEYING
MISS BINTULHUDA BINTI
ZAINODIN
INTRODUCTION
● Large project takes a long time to finish,
employer need to wait longer.
● Some building contract allows employer to
occupy the completed parts of the works before
the completion of whole works.
● Relevant parts must be made known in advance
by the employer during tendering stage or during
progress of the work.
Relevant contractual provisions

P.W.D. FORM 203A


●Clause 39
●Clause 41
●Clause 42
Sectional completion
● Employer takes possession of a predetermined section or
sections of the works before practical completion of the
whole works.

● The whole work will be handed over upon the issuance of


CPC for the whole work.

● Contractor must complete the whole works within


specified time unless there is provision for the requirement
of :
a) possession by stages
b) sectional completion
Sectional completion (cont’d)
● The employer has the right to take possession of the
completed works in stages
● If the employer wishes the works to be completed and
handed over in phases – expression provision to this
effect must be included in the contract document.
● Without that provisions, the employer cannot occupy any
part of the works as he will be in breach of his obligation
to give the contractor possession and to allow him
maintain it until completion
Sectional completion (cont’d)

● His intention to do so must be made


known to the contractor during the
tendering stage i.e. state in the tender
document.

● The relevant sections must be clearly


stated and identified in the Appendix,
drawings etc.
Effects of sectional completion
Clause 41.1
● If stated in different completion date for parts/section,
different and separate for the following:
i) Certificate of Practical Completion
ii) Delay and Extension of Time
iii) Liquidated Acertained Damages
iv) Defect Liability Period
But remain the same for the following:
i) Insurance of Works (clause 18)
ii) Performance Bond (clause 13)-release upon issuance of
CMGD
iii) Final payment of Final Certificate (clause 31)
Sectional completion will not affect :

a) Insurance of work – to cover for the whole


works
b) Performance bond - to cover for the whole
works
c) Final Certificate – issued only once
● The release of the Performance Bond or
PGS can only be done upon the issuance of
C.C.M.G.D for the whole works
E.O.T for
delay of that
section

Effects of
C.C.M.G.D Sectional L.A.D
Completion.

D.L.P
PARTIAL COMPLETION
PAM Form Clause 42.1
● The employer takes early possession of a section or sections of the
works with the agreement of the contractor while the work is in
progress
● The provision allows for any part of the completed works to be
handed over to the employer before practical completion
● Consent from the contractor is required.
● The contractor’s consent is not to be unreasonably withheld i.e. the
contractor is bound to give his consent to the government’s request
for partial completion
● Without such consent – the employer will be breach of his obligation
to give the contractor complete possession of site until completion
Effects of partial completion

Certificate of Partial Occupation


● Clause 42.1(a)
● CPO of the works :
a) To be issued by S.O for each section taken
b) Within 7 days after taking over relevant section
c) Stating the estimated value of relevant section
Effects of partial completion

Defects Liability Period

Clause 42.1(b)
● Section is deemed to have reached practical completion
but no formal CPC is issued
● D.L.P starts immediately for that section
● CPC to be issued only once on the completion of the
whole works
Effects of partial completion
C.C.M.G.D

Clause 42.1(c)
● CCMGD to be issued :
a) On expiry of DLP for the section
b) Upon making good defects by the contractor for that
section
Effects of partial completion
L.A.D
Clause 42.1(d)

● LAD for the remainder of the works :


a) Has to be recalculated
b) To be reduced in the proportion which the value of the
relevant part bears to the contract sum
c) No allowance is made for any variations

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