The acceptance certificate is the document that the employer/client issues to the contractor certifying the successful completion of the project. It is the final certificate that the contractor receives as proof of completion of the project.
There may also be other obligations to the contractor even if the acceptance report has been issued. The contractor is responsible for correcting defects during the defects liability period. There may also be other maintenance agreements with the contractor that have nothing to do with acceptance by the client.
What is a certificate of acquisition?
A Certificate of Acquisition (TOC) is a document that certifies that the work has been largely completed and that the area is safe to live in. In other contracts, it is called Notice of Assumption or Certificate of Practical Completion.
When should the certificate be issued?
Once the work is completed, the contractor informs the engineer about the acceptance of the work. Thus, the engineer responsible for the project notifies the client of the completion of the project and the need for acceptance.
Generally, acceptance occurs after final inspection and testing is completed. The employer usually participates in the final inspection and takes over the work as expected.
During the inspection, which is carried out with the participation of the contractor, engineer and customer, some defects may be revealed. These will be communicated to the contractor and he will be asked to correct them before acceptance.
Once the contractor is informed that he will correct the defects identified in the final inspection, the engineer or the engineer and the client can jointly verify the defects and accept the work.
The contractor then delivers the project to the client. This is done by accepting our certificate. The acceptance certificate is usually signed by the contractor, engineer and customer.
Why Contractors Need a Certificate of Acceptance
Acceptance is confirmation to the contractor that he has completed the work in accordance with the agreement between him and the client. With the issuance of this certificate, the contractor is relieved of his responsibility for the construction project and the construction site.
Until the client takes over the project, the responsibility remains with the contractor. Furthermore, responsibility for any loss or damage to property beyond the Contractor's control also lies with the Customer.
Although the acceptance certificate is issued, the contractor is responsible for taking care of defects that have arisen during the defects liability period. In the construction industry, approximately 5% of contractor payments are retained as retainage, which can be released at the end of the defects liability period.
There are practices where 100% or 50% of the retained money is paid to the contractor if the contractor provides an acceptable guarantee. This could be done in accordance with the terms of the contractual agreement. Procurement must also be completed for this process.
