Certificate of Final Inspection and Certificate of Completion

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Certificate of Final Inspection and Certificate of Completion

Post by vines on Thu Aug 09, 2012 4:49 pm

Hi to all. may tanong po ako. automatic po ba na ang date ng Certificate of Final Inspection is also the date of Certificate of Completion? this is with regard to completed infrastructure project. thank you in advance.
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Re: Certificate of Final Inspection and Certificate of Completion

Post by engrjhez® on Thu Aug 09, 2012 6:53 pm

msc wrote:Hi to all. may tanong po ako. automatic po ba na ang date ng Certificate of Final Inspection is also the date of Certificate of Completion? this is with regard to completed infrastructure project. thank you in advance.

Based on the reading of the IRR and the guidelines under Annex "E", the Certificate of Final Inspection is to be issued one (1) year from Certificate of Completion. Smile
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Re: Certificate of Final Inspection and Certificate of Completion

Post by sunriser431 on Thu Aug 09, 2012 11:50 pm

msc wrote:Hi to all. may tanong po ako. automatic po ba na ang date ng Certificate of Final Inspection is also the date of Certificate of Completion? this is with regard to completed infrastructure project. thank you in advance.
Excerpts from Section IV. General Conditions of Contract
section 49. Completion
The Contractor shall request the Procuring Entity’s Representative to issue a certificate of Completion of the Works, and the Procuring Entity’s Representative will do so upon deciding that the work is completed.

From the information presented, it appears the certificate of completion of the works accomplished must be done first.
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Re: Certificate of Final Inspection and Certificate of Completion

Post by regina avelino on Fri Aug 10, 2012 12:02 pm

msc wrote:Hi to all. may tanong po ako. automatic po ba na ang date ng Certificate of Final Inspection is also the date of Certificate of Completion? this is with regard to completed infrastructure project. thank you in advance.

Here's my opinion regarding this matter. The certificate of final inspection or the final inspection report must bear the same date as with the certificate of completion though sometimes they are different because the certificate is signed by the HOPE on a latter date while the final inspection report is signed on the date of the actual inspection. The inspection date which tells us that the project is 100% complete has more weight. The inspection report (final) is a pre-requisite before the PE issues the certificate of completion. The more important question is: is the date of completion the same with that of the date of acceptance. It depends on the presence of defects noted by the inspection team during final inspection conducted. The inspection team makes its recommendation on the defects observed which are required to be repaired before finally issuing the certificate of acceptance. One the defects are repaired, then that is the time that the certificate of acceptance is issued.

The Certificate of final acceptance is issued 1 year after completion. The contractor shall undertake the repair works of any damage to the infrastructure on account of use of materials of inferior quality and such other defects noted during this period.


Last edited by regina avelino on Fri Aug 10, 2012 12:26 pm; edited 1 time in total (Reason for editing : issuance to acceptance)

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Re: Certificate of Final Inspection and Certificate of Completion

Post by engrjhez® on Fri Aug 10, 2012 1:54 pm

regina avelino wrote:
msc wrote:Hi to all. may tanong po ako. automatic po ba na ang date ng Certificate of Final Inspection is also the date of Certificate of Completion? this is with regard to completed infrastructure project. thank you in advance.

Here's my opinion regarding this matter. The certificate of final inspection or the final inspection report must bear the same date as with the certificate of completion though sometimes they are different because the certificate is signed by the HOPE on a latter date while the final inspection report is signed on the date of the actual inspection. The inspection date which tells us that the project is 100% complete has more weight. The inspection report (final) is a pre-requisite before the PE issues the certificate of completion. The more important question is: is the date of completion the same with that of the date of acceptance. It depends on the presence of defects noted by the inspection team during final inspection conducted. The inspection team makes its recommendation on the defects observed which are required to be repaired before finally issuing the certificate of acceptance. One the defects are repaired, then that is the time that the certificate of acceptance is issued.

The Certificate of final acceptance is issued 1 year after completion. The contractor shall undertake the repair works of any damage to the infrastructure on account of use of materials of inferior quality and such other defects noted during this period.

Am I correct to read from the opinion above that the Certificate of Final Inspection is dated in the same time as project completion, but release will only be after one (1) year therefrom? Smile
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Re: Certificate of Final Inspection and Certificate of Completion

Post by leobcaleja on Sat Nov 23, 2013 12:01 pm

Certificate of Completion is issued to the Contractor by the PE after satisfactorily rectifying all items in the punch list. Prior to the expiration of the defects liability period (1 year), the Contractor requests the PE for the final inspection of the completed project, and if no defects are found, the PE issues the Certificate of Final Acceptance to the Contractor attached thereto is the Final Inspection Report indicating no defects. However, if there are defects, the Contractor must rectify the defects to the satisfaction of the PE, thereafter, the PE certifies the rectification and issues the Certificate of Final Acceptance.
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Re: Certificate of Final Inspection and Certificate of Completion

Post by regina avelino on Mon Nov 25, 2013 10:02 am

I see. agree.

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Certificate of Completion, Certificate of Acceptance - Seeking Clear View- What? When? How? Shall we correctly apply

Post by carreongnsss on Wed Dec 10, 2014 12:29 pm

Gentlemen,

May we have your opinion regarding the the following important statements that most of the time invites unlimited arguments.

How can we precisely define, differentiate, and apply these statements.

Certificate of Completion
Certificate of Acceptance

The other office unit & public servants has so many interpretations on this especially at the end of the project implementation when the stakeholders are financially affected by these two statements.

Your contribution to enlighten all public servants will be of great help for us all.. God Bless...


Last edited by carreongnsss on Thu Dec 11, 2014 12:26 pm; edited 1 time in total
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Re: Certificate of Final Inspection and Certificate of Completion

Post by leobcaleja on Wed Dec 10, 2014 4:58 pm

The timeline of an infrastructure project precisely defines and differentiates the 2 certifications.  The certificate of completion is issued on or before the contract period expires; while the certificate of acceptance is issued after the defects liability period (DLP) if no defects are found, or after the satisfactory rectification of the defects found during the DLP. The DLP starts when the certificate of completion is dated.

May I know the unlimited arguments arising from the 2 certifications?
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Conflict Between Certificate of Completion and Acceptance - Dates -

Post by carreongnsss on Thu Dec 11, 2014 12:06 pm

Thanks po sir Leo, with insfrastructure projects I agree you are right po. But with the procurement of goods I hope you can share more insights as well. With the procurement of goods, almost all of these are based on a turnkey project. Thus, payment issues invites more clarfications. For the system installation ex. Fire Alarm & Suppression System of the high rise buildings.

Often times the Certificate of Completion (CC) does not normally coincides with the issued Certificate of Acceptance (CA), because you need to conduct proper and thorough testings aside from the commissioning periods aloted within the contract duration. These observations are quite important because minor defects that may tend to severe and eventually fail over time or when system installations are operated and/or tested at extreme conditions. There is alimited opportnity for the end-users to validly realized the rendered performance & quality of the entire system installation. With more than a thousand devices for the system installations done in the building it is quite difficult for the end-user's to confidently declare with assurance that all those devices are properly installed and free from any defects. Random testings of the system installations during regular working hours in not always available, because this may cause to hamper the operations and end-up lossing much manhours to the employees working in the entire building.

It pays a lot for the evaluator/end-user to allow ample time to observed the system installation before one can issue a sound Certificate of Acceptance. Thus, the time is of great essence to execute this document.

If we consider this CA document to initiate the warranty date to start, What are the implications with respect to the service provider and the end-user? When is the legit and valid time to execute this CA document?
Please share your experience that will further enlighten us. When can we say that the evaluator/end-user or project management can made a sound judgement to execute this docuemnt?

If the Accounting Department and perhaps other units interprets the CA document to be the ference time or the project completion date, there are issues that may crop-up particularly in th the application of Liquidated Damages (L.D.). This creates an issue between the evaluator/end-user or the one issueing the CA and the other units that banks on their interpretation between the CA & CC document because this becomes their tool to apply L.D.

Example:  Pls. refer to the following as case study for the above.

The issued Certifcate of Completion and Accceptance stated the following in the same page of the document.

Project Duration : September 01 to December 2013  
Certificate of Completion (CC) dated Dec. 2013 - issued after having all the system installed, commissioned and completed.
Certificate of Acceptance (CA) dated February 28. 2014 - issued after having thouroughly conducted the rigid testing and ample time to make observations of the system operations.

If again, an accounting/other units interprets CA as reference for applying the L.D. they may use the document as a tool to apply L.D.  The end-user are not agreeable with this but the earlier mentioned units insisted to apply L.D. for two months delay because the CA was dated two months later, due to observations and testings made. Can yu share your experience on how to dealth the situation? & How? 

CA which is normally dated much later than the date of CC reflects the real situation during the project implementation.
In the engineering field of practice this situation are commonly encountered. Oviously, using the the formula for L.D. the service provider is no longer subject to L.D. because technically (0) zero is the value of the undelivered or uncompleted portion of the project.

Unfortunately, some people from other offices/units responsible for the processing of the payment interprets otherwise and insists to apply L.D. as in this example. Can you share your experiences the implications of the parties involve in the processing of the payment?  

Please share your experiences to clear and help us further enlighten this issues.

Thank you for your help.
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Re: Certificate of Final Inspection and Certificate of Completion

Post by leobcaleja on Thu Dec 11, 2014 4:51 pm

In response to your reuest for help, I would advise you to let those other units including your legal and enginering depts. to study carefully the contract conditions, timelines and technical specifications.  Contractual issues arising from various interpretations must be resolved by the legal dept.; while technical issues by the engineering dept.

If the provision of LD in the contract is for delay, then a Certicate of Completion (CoC) stating that the contratcor has satisfacorily completed the project on time would negate the application of LD against the contractor.

A CoC is issued after the punchlist, if any, is rectified satifactorily.  For ME/EE etc. systems and other installations, after rectification of punchlist, if, any, and conduct of testing and commissioning, if required, were done satisfactorily, then the CoC can be issued.  The certification also states that the completed works are in accordance with the contract documents.

After the CoC issued, the contractor issues a Warranty Bond for a period equivalent to the Defects Liability Period (DLP) indicated in the contract. Normally one year.  Also, the end-user takes over the completed project and issues a Taking Over Certificate (ToC) to the contractor.

During the DLP, the contractor is responsible for repairing any defects found on the contractor's works.  No random or rigid testing or testing at extreme conditions are required after the issuance of the CoC.  Remember that in issuing the CoC, the works are done in accordance with the contract documents.

Devices of systems that fail during the DLP are replaced by the contracor thru its supplier or subcontractor.  

Before issuing the Certificate of Acceptance (CoA), the end-user is advised to conduct an inspection to verify the condition of the completed project and issue defects found before the expiration of the DLP to the contractor for rectification.

In our practice, we always include retention in our contract conditions and require performance bond.  These instruments provide assurance to the payee (end-user) in case the contractor fails to comply with his obligations under the contract.  Hence, in every progress billing we retain 10%.  In the payment for the Final billing, we still retain 10% and require the CoC, and all contractual documents submitted plus the warranty bond.

If after your legal dept. has resolved all contractual issues and your accounting dept. still doesn't comprehend the difference of CoC and CoA then I suspect something wrong with your accounting dept.

I suggest that you prepare a flow chart in processing your payments, CoC and CoA and have it approved by all concerned units.


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Re: Certificate of Final Inspection and Certificate of Completion

Post by leobcaleja on Thu Dec 11, 2014 4:55 pm

Correction on the "payee" should be "payor" (end-user).
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