May 19, 2012
Early Possession of WORKS
Do you know that ‘partial possession’, or ‘partial re-occupation’ or ‘phased or stage completion’ and ‘sectional completion’, all refer to the circumstances in which the contractor has completed a divisible portion of the total work and agrees to the client’s (the owner of the project) request for permission to take early possession of it.
The forms of contract (the agreement) provide the formula by which that portion is to value for the purpose of a proportionate reduction in the insurance, retention and liquidated damages provisions relevant to the remainder of the site still under the contractor’s control, and for the early commencement of the defects liability period.
The contractor is under no obligation to comply with any such demand; nevertheless it may be considered beneficial overall in the reduction of costs and risks for both parties. Financial compensation for the subsequent interference to the contractor’s work may be agreed as a collateral agreement.
In other words, ‘sectional completion’ or ‘phased or stage completion’, refer to the situation in which the work has been designed for completion in predetermined stage and where the dates for their completion and consequential effects on liquidated damages liability, etc are scheduled in the contract.