Quote:
Originally Posted by VarBreStr18
thanks for the explanation, you are very knowledgeble.
Wonder how "finished" is the turn over stage such as interior walls partitions etc etc? is this similar to "lock up stage"? thanks
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"Lock up" and "Turn over" are informal terms that we don't use in either documents or contracts. I think they are common because contractors use them.
There is a specific terminology that specifies the procedures involved in the turning over (or taking over) of a project. My previous post spoke loosely and I will correct that here.
Take-over procedures typically begin at between 95 and 99% completion. This, of course is strictly impossible to determine, so it is a bit of a fiction and is determined simply through the architect’s acknowledgement.
It begins with a contractor’s inspection of
Substantial Performance, and preparation of a list of uncompleted work. On that basis the contractor applies for a
Certificate of Substantial Completion.
The issuance of this triggers liens (holdbacks of up to 30 days after substantial performance), warrantees and guarantees.
The architect/engineer inspects and produces the
Deficiency List (the actual construction is inspected with regard to drawings/specifications and scope). The architect then prepares a
Certificate of Substantial Performance.
The contractor/owner applies to the municipality for a
Temporary Occupancy Certificate, or an
Occupancy Certificate.
As the unfinished work and deficiencies are rectified, the architect provides a
Certificate for Payment of Holdback Monies.
The BC Liens Statute sets ou the following timeline:
Substantial Performance
30 day period for lien registrations
10 day grace (checking of liens)
Hold back released (41 day total)
This requires a notarized declaration that all contributors have been paid by the prime contractor.
The architect and project team perform a final inspection: issuing a
Certificate of Total Performance, signifying the contractor has satisfied the architect’s deficiency list
the guarantee period starts
final payment is initiated