PRACTICAL COMPLETION
Naa-Yaa Company Limited was adjudged the least evaluated bidder for the
Construction of Simplified Sewerage Treatment Facility under the Greater Accra
Metropolitan Sanitation and Water Project, a Wold Bank Funded Project. The six month
Contract was signed in December 18, 2018, using the World Bank Standard Contract for
Small Works, edition. On April 31, 2019, it was established during the 4th Interim
Valuation that the Percentage Completion was at 91%. The Contractors, Shanco
Limited then submitted application for practical completion for the works. In evaluating
the position of practical completion, the Contract Manager (CM) found that external
works, including planting grasses to mitigate soil erosion as captured in the
Environmental Safety Management Plan (ESMP) were not completed. Also about half of
the walk-way paving slabs were out of level due to inadequate compaction prior to
laying. The contractor has become insolvent and could not continue the remaining 9%
of the works. The outbreak of Coronavirus Disease (Covid-19) pandemic accounted for
the Contractors, Shanco Limited’s insolvency, hence inability to complete the project as
scheduled.
You are to answer the following questions:
a. Critically, evaluate with industrial examples the term ‘Practical completion and its
implications’ on the project. (5 marks)
b. Critically evaluate with relevant industrial examples, whether the Contractor,
Shanco Limited, has the right to be granted a Certificate of Practical Completion for the
above situations and suggest three (3) ways to complete insolvent contract. (15 marks)
c. Critically evaluate the right of the Naa-Yaa Company Limited on the 91%
practical completion of the project. (5 marks)
