Many construction contracts require that certificates are issued by the Contract Administrator (most cases Quantity Surveyor) or any other construction professional obliged under a contract in relation to some matter provided for by the forms of the contract.
These can either be issued regularly during the course of the works or may signify that a particular stage has been achieved or accomplished.
In Uganda’s construction industry today, there are a number of certificates and permits issued to ensure compliance with regulations and standards. These include but not limited to;
1. Interim Certificates. These are issued at intervals as work progresses. It entitles the contractor some money for facilitation for work done. The values and amount reflected on these certificates should also include materials on site and at times materials and works offsite.
2. Certificate of non-compliance. This is issued when there’s failure to finish work stipulated in the contract by a required time i.e. only when there’s no justifiable reason for him to delay works. From the time it’s issued, the contractor is liable to liquidated damages (as pre-agreed in the contact) for the assumed loss of the employer for not using the facility.
3. Certificate of Practical Completion. This certifies that actual work has been completed hence the facility is ready for use. This doesn’t necessarily mean that there are no works on going or that need to be corrected but basically it focuses on a biggest percentage of completed works to allow occupancy. Things like snags, external works and defects can still be worked on after issuance of this certificate.
Half of the Retention money is paid and the other half is retained to be paid after the Defects Liability Period. Here the facility is tested before issuing this certificate to ensure that the facility is now fit for use.
4. Final Certificate. This is given at the end of the Defects Liability Period. This is the period after which all stipulated and identified defects notified to the contractor by the client’s representative on the project i.e. consultants/contract administrator have been successfully made good to the satisfaction of the latter. This period is usually 6 months after practical completion on most commercial related projects though some contracts push it to 12 months or even more.
5. Certificate of Completion of making good defects. This is issued to confirm that the contractor has done all defects during the Defects Liability Period i.e. all that was notified to him and duly identified. Here, the remainder of the Retention money is released and the contractor is relieved from contract.
Some of the key permits issued by the various Regulatory Bodies include;
6. Building Plan Approval Certificate or Building Permit. This is issued by local council authorities tied to the project location to approve construction plans before any building work begins.
7. Environmental Impact Assessment (EIA) Certificate. Required for major and/or public infrastructure related projects to ensure they meet environmental regulations as guided by the National Environment Management Authority (NEMA).
8. Occupational Permit. Issued upon the completion of a building, certifying that it is safe for occupancy and has been constructed according to approved plans.
9. Health and Safety Certificates. Ensures that the construction site complies with occupational health and safety standards.
10. Electrical Compliance Certificate. Issued to certify that the electrical installations in a building meet the required safety standards.
11. Plumbing Compliance Certificate. Ensures that the plumbing work meets the necessary standards and regulations.
12. Contractor Registration Certificate. Issued to contractors who are registered and authorized to carry out construction work. This under UNABCEC has necessitated and emphasized the verification of contractors, subcontractors, and associated workers to ensure that they meet the required professional standards.
13. Quality Assurance Certificates. These may be issued for specific materials or processes to ensure they meet the required standards and specifications.
In conclusion, the Joints Contracts Tribunal provides that nothing in any Certificate is conclusive evidence that work or materials are in accordance with the contract i.e. either party can challenge the certificate.
For example, an interim certificate can be corrected or rectified when the next is issued, final certificate can be conclusive but can also be rectified by the Contract Administrator or Private Adjudicator and where it’s not challenged, it acts as conclusive evidence that the contract has been executed to the satisfaction of both parties.