Content Headings

Key Issues

Example clauses

Notes and References

Completion

Alternative 2 provides for a reduction or increase in the availability payment if the project is completed later or earlier than the scheduled time.

Alternative 1 does not provide for this. The commercial risk of not completing ahead of the scheduled time is with the Concessionaire already, because the Concessionaire is losing the opportunity to generate revenue within its concession period. (Unless the concession period is expressed to commence from the date of construction completion.)

Alternative 1

Pursuant to the terms of the Independent Tester Contract, the parties shall procure that the Independent Tester shall, when he is satisfied that completion [of a Phase] has occurred in accordance with this Agreement [the Completion Criteria], issue a Certificate of Practical Completion [in respect of that Phase] to that effect stating the date upon which, in his opinion, the Actual Completion Date [Phase Actual Completion Date] occurred. Subject to Clauses [Snagging and Defects], the issue of the Certificate of Practical Completion [in respect of a Phase] shall, in the absence of manifest error, bad faith or fraud, be conclusive evidence for the purpose only of ascertaining the [relevant] Payment Commencement Date, that the Actual Completion Date [Phase Actual Completion Date] has occurred on the date stated in such certificate.

The Independent Tester shall issue the Certificate of Practical Completion [in relation to a Phase] notwithstanding that there are Snagging Matters. Where there are Snagging Matters, the parties shall procure that the Independent Tester shall, within [number] Business Days of the date of issue of the [relevant] Certificate of Practical Completion, issue a Snagging Notice which shall specify the Snagging Matters and an estimate of the cost of rectifying such Snagging Matters.

Following the issue of a Snagging Notice, Concessionaire shall, in consultation with the Authority's Representative and in such manner as to cause as little disruption as reasonably practicable to the Authority's Post Completion Commissioning and the Authority's use of the Facilities, rectify all Snagging Matters within [number] Business Days of the issue of the Snagging Notice.

If, within [number] Business Days of the issue of the Snagging Notice Concessionaire has failed to rectify the Snagging Matters specified in the Snagging Notice the Authority may by itself (or engage others to) carry out the works necessary to rectify the Snagging Matters, at the risk and cost of Concessionaire.

If, within [  ] Business Days of the date specified in the programme for the rectification of all Snagging Matters specified in the Snagging Notice Concessionaire has failed to rectify all of those Snagging Matters the Authority may be itself (or engage others to) carry out the works necessary to rectify the Snagging Matters, at the risk and cost of Concessionaire.

The issue of the Certificate of Practical Completion [in respect of a Phase] shall in no way affect the obligations of Concessionaire under this Agreement including in respect of any Defects.

As-built specification

As soon as it is available, after the issue of the Certificate of Practical Completion [in relation to a Phase to the extent relating to that Phase], Concessionaire shall provide to the Authority a copy of the as-built building specification, together with all [drawings relating to the Works].

See SOPC Section 3.6.

Alternative 1 adapted from Department of Health (UK), Standard Form Project Agreement Index reference A1 Folder 1.

Alternative 2

The Project shall be deemed to be complete and open to traffic only when the Provisional Certificate or the Completion Certificate is issued by the Independent Engineer in accordance with the provisions hereof. 

In case COD is different from the Scheduled Project Completion Date, the provisions of clause [8.3] shall apply. Provided if COD is delayed beyond 120 days of the Scheduled Project Completion Date, the Authority shall, subject to the provisions of clause [ref], be entitled to terminate this Agreement and to appropriate the Performance Security.

Alternative 2 adapted from Concession Agreement for Colombo Kathunayake Expressway Project (note confidential), index reference A2, folder 1