Article #080 How to Ensure Issuing the Performance Certificate for Construction Contracts by the Relevant Contract Clauses?

Performance Certificate is the certificate issued under sub-clause 11.9 of the FIDIC contract to constitute acceptance of the Works by the Engineer. This will enable the Contractor to submit to the Engineer within 56 days a draft final statement with supporting documents. When the Engineer verifies the statement, the Contractor will issue a final statement (sub-clause 14.11) and a discharge for full and final settlement (sub-clause 14.8). In addition, insurance cover will no longer be required to be maintained by the Contractor (sub-clause 18.2).

The Engineer will issue the Performance Certificate within 28 days after the latest expiry dates of the Defects Notification Period or as soon as the Contractor has completed and tested all the Works, including remedying any defects. The Defects Notification Period is the period for notifying defects and/or damage in the works or a section or a part (as the case may be) under sub-clause 11.1 [Completion of Outstanding Work and Remedying Defects], as stated in the contract data (if not stated, one year), and as may be extended under sub-clause 11.3 [Extension of Defects Notification Period]. This period is calculated from the Date of Completion of the works or section or part.

The Defects Notification Period starts when the Engineer issues the Taking Over Certificate if works are completed according to the contract. The Contractor may submit a notice to the Engineer not earlier than 14 days before expected completion or take over requesting take over (sub-clause 10.1).

Using Project Management Information Systems (PMIS) like PMWeb, the issuance of the Performance Certificate process can be automated. The PMWeb form builder will be used to capture the details of the Performance Certificate which will include the expiry date of the Defects Notification Period, letter date, letter reference number along with the other default fields such as project name and project stakeholders. Additional fields can be added if needed.

The attachment tab could be used to link relevant PMWeb records such as the Taking Over Certificates and other needed documents to the Performance Certificate form. In addition, the final defects report can be attached to the form to provide proof that all defects had been rectified. Also, links to relevant PMWeb records and imported MS Outlook emails can be attached to the form.

Since the Performance Certificate letter has serious contractual implications on ending a major part of the Contractor’s obligations on the project, the form will be assigned a workflow to ensure the proper and formal review and approval before its formally issued to the Project Owner and Contractor.

The Performance Certificate letter template will be predefined in PMWeb Word so it can be automatically issued from within the form. The letter template below shows some of the fields that were automatically populated from the Performance Certificate form in bold font.

About the Authorfounder

Bassam Samman, PMP, PSP, EVP, GPM is a Senior Project Management Consultant with more than 35-year service record providing project management and controls services to over 100 projects with a total value of over US $5 Billion. Those projects included Commercial, Residential, Education and Healthcare Buildings and Infrastructure, Entertainment and Shopping Malls, Oil and Gas Plants and Refineries, and Telecommunication and Information Technology projects. He is thoroughly experienced in complete project management including project management control systems, computerized project control software, claims analysis/prevention, risk analysis/management (contingency planning), design, supervision, training, and business development.

Bassam is a frequent speaker on topics relating to Project Management, Strategic Project Management, and Project Management Personal Skills. Over the past 35 years, he has lectured at more than 350 events and courses at different locations in the Middle East, North Africa, Europe, and South America. He has written more than 250 articles on project management and project management information systems that were featured in international and regional magazines and newspapers. He is a co-founder of the Project Management Institute- Arabian Gulf Chapter (PMI-AGC) and has served on its board of directors for more than 6 years. He is a certified Project Management Professional (PMP) from the Project Management Institute (PMI), a certified Planning and Scheduling Professional (PSP), and Earned Value Professional (EVP) from the American Association of Cost Engineers (AACE) and Green Project Management (GPM).

Bassam holds a Masters in Engineering Administration (Construction Management) with Faculty Commendation, George Washington University, Washington, D.C., USA, Bachelor in Civil Engineering – Kuwait University, Kuwait and has attended many executive management programs at Harvard Business School, Boston, USA and London Business School, London, UK.


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