Payments after practical completion
Different forms of contract have different provisions concerning the payments which need to be made after practical completion has been reached. For example:
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JCT 2005 Standard Form of Building Contract provides that after the date of practical completion (or the date within one month thereafter if specified in the contract particulars), interim certificates shall be issued 'as and when further amounts are ascertained as payable to the Contractor by the Employer' and upon the expiry of the rectification period, or issue of certificate of making good, whichever is later.
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JCT 2005 Intermediate Building Contract and Minor Works Building Contract provide for the issue of a single interim certificate within fourteen days after practical completion, with no further certificates required to be issued until the issue of the final certificate.
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JCT 2005 Design and Build Contract provides for a different payment regime after practical completion depending on whether the parties select Alternative A or B in the contract particulars.
Under the 2016 JCT suite things have been simplified. The frequency of payment applications no longer depends on whether they are made before or after practical completion. Interim payments post-PC are to be monthly, unless otherwise agreed.
It is, therefore, essential to be familiar with the provisions of the particular contract in question with regard to the certificates and notices which must be issued and the payments which must be made following practical completion.