10.1 TAKING OVER OF THE WORKS
When the works are in his opinion completed and ready to be taken over by
the Employer, the Contractor applies by notice to the Engineer or Employer
for a Taking-Over Certificate (TOC).
9
If the works are divided into sections
(see Section 4.10.2 below), the Contractor similarly applies for a TOC in
respect of each section.
9
Strictly speaking, the Contractor can apply for the TOC not earlier than 14 days before
the works are in his opinion complete and ready to be taken over (clause 10.1).
The issuing of the TOC is an important milestone in the project. It signifies
the date at which the works are complete, subject to rectification of defects
and completing outstanding items of work, and from which the Employer can
go into commercial use and operation of the plant or facility.
Contractually, the date indicated in the TOC is of great importance as it is
the date from which:
●
the Employer takes responsibility for care and maintenance of the works;
●
one half of the retention money (see Section 4.14) is paid to the Contractor;
●
the Employer ’ s entitlement to delay damages ends; and
●
the Defects Notification Period (see Section 4.11) begins.
The contract discourages delay on the part of the Engineer or Employer in
issuing the TOC. Within 28 days after receipt of the Contractor ’ s notice apply-
ing for a TOC, he must either:
●
issue a TOC stating the date on which the works were completed in
accordance with the contract, save for any minor outstanding works and
defects; or
●
reject the application, giving reasons and specifying all the work required
to be done by the Contractor before the issue of the TOC.
If the Engineer or Employer fails to respond within 28 days of receipt of the
Contractor ’ s notice, and the works are substantially in accordance with the
contract, then the TOC is to be deemed to have been issued on the last day of
the 28-day period.