ABSTRACT

The date of possession or commencement and the date for completion of the works are key dates in any building contract, and Design and Build Contract requires a ‘Date of Possession’ and a ‘Date for Completion’ to be inserted into the contract particulars. Possession of the site is a fundamental term of the contract. The contractor is required to commence work on being given possession of the site, to proceed regularly and diligently and to complete the works on or before the completion date. The most important reason for giving an exact completion date in a building contract is that it provides a fixed point from which damages may be payable in the event of non-completion. A practical completion certificate was issued and new contractors commenced a separate contract to construct the bakery. The contractor is obliged to complete ‘on or before’ the completion date and once practical completion is achieved the employer is obliged to accept the works.