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Tunku Abdul Rahman University College

Faculty of Built Environment


(Department of Quantity Surveying)
(Diploma in Quantity Surveying)
(Academic Year 2020/2021)

ATQS 3122 Quantity Surveying Practices II

Lecturer: Sr Lim Meng Heok (KMN, FRISM, CQS)

Tutorial Work No.4

Questions
1. Define a contract completion date; briefly explain how the date of completion is fixed in a
contract.

2. It is important that if the works have not been completed within the time of completion or
any extended time granted and in order not to allow time-at-large.

Briefly explain the meaning of time-at–large in a building contract.

3. What does an architect / contract administrator needs to do as empowered in the


contract if the contractor fails to complete the works on the date of completion?

Group Leader: CHAN WEIQIN (ID No.19WVD01097)


Group Members: 1. CHONG JIA EN (ID No. 19WVD01652)
2. CHONG ZHI HAO (ID No. 19WVD01132)

3. DANIEL ONG ZHANG JIE (ID No. 19WVD01854)


4. LOKE CHUN HIN (ID No. 19WVD01479)
Group No: DQS2 Group 02 (4)
Date of Submission: 23/2/2021
1. Define a contract completion date; briefly explain how the date of
completion is fixed in a contract.

The date for completion is the date by which the contractor is expected to
complete the works, which may be earlier or later than the contract
completion date. Completion date in (clause 21 PAM 2018) is the date by
which the contractor is required under the contract to complete the works.
It is capable of being revised or re-fixed to take into consideration an
extension of time (EOT) contractually granted to the contractor. The
completion date may be altered during the course of the contract, for
example if the date of the contractor taking possession of the site to begin
construction is delayed or if an EOT is granted due to delays due to the
works that are not the contractor's fault.

The fixed date for which the Contractor shall complete his works and
hand over to the Employer. If the Contractor is entitled to any extension of
time (EOT), a new Completion Date will be fixed. Contractor must
complete the works on or before the commencement date stated in the
Appendix. Contractor may complete the works earlier than the Date of
Completion stated in the Appendix and merely free from any contractual
restraint. Architects shall issue ‘Certificate of Sectional Completion’ if there
are sections of the works are practically completed. If the Contractor is
entitled to EOT, the Architect will fix a new Completion Date. The new
Completion Date must not be earlier than the original Date of Completion.

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2. It is important that if the works have not been completed within the time
of completion or any extended time granted and in order not to allow time-
at-large.

Briefly explain the meaning of time-at–large in a building contract.

The meaning of time-at-large is describing a situation where there is no


date of completion or where the date of completion is invalid for that
project. Which means there is extra time to let the contractor complete the
work in a reasonable time without compensation of the liquidated damages
which were imposed by the employer or client. The time can become at
large because there is no clear completion date stated at the contract. It is
common on construction projects that the works are not completed by the
date of completion. If this is due to delays for which the contractor is
responsible, then the contract will generally include a provision for them to
pay the liquidated damages to the client. This kind of condition occurs
when the architect fails to issue the Certificate of Non-Completion at the
date of completion. This means the employer has no right to compensate
the contractor in the Extension of Time as the architect is not issued the
CNC. It is important that the clauses describing the relevant events cover
all necessary eventualities, otherwise if one of the event occur that is not
covered, the time will be at large.

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3. What does an architect / contract administrator needs to do as
empowered in the contract if the contractor fails to complete the works on
the date of completion?

The Architect / contract administrator shall issue a Certificate of Non-


Completion(CNC) to that effect. The Certificate of Non-Completion is given
with a formal written letter to the contractor informing them that they have
failed to complete the works by the date of completion that is listed in the
building contract. In addition, the Certificate of Practical Completion(CPC)
cannot be issued by the date of completion due to the non-complete work.
After releasing the Certificate of Non-Completion, the Contractor shall pay
the Liquidated Damages(LD), LD as stated in Appendix from the
Completion Date to the date of Practical Completion, where the works are
practically complete in satisfaction of the Architect. Liquidated Damages is
a form of monetary compensation which the Contractor is responsible to
pay the Employer for the period from the Completion Date to the Date of
Practical Completion. It is usually stated as a rate of RM 1000 per day.
This monetary compensation is usually deducted at the Performance Bond
or Retention Fund. The CNC is the condition precedent to charging LD. As
long as there is no CNC or the CNC is invalid, then there is no LD. An
invalid CNC means that it is a superseded CNC. For example, when a
CNC is issued and the architect changes his mind and approves the EOT
or if the extended date is not met, a new CNC must be issued. If the
Certificate of Extension of Time is released after issuance of CNC, the
employer shall the surplus amount of LD imposed to the contractor.

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