Taking over certificate is the document that is issued by the employer/client to the contractor certifying the successful completion of the project. It is the final certification received by the contractor as the record of completion of the project.
There may be other bindings with the contractor though the taking over certificate is issued. The contractor is liable for the defect rectification during the defect liability period. There may be other maintenance agreements with the contractor that are not related to the taking over by the employer.
What is Taking Over Certificate
A Taking Over Certificate (T.O.C.) is a document that certifies that the work has been completed to a larger extent and that the area is safe for habitation. On other contracts, it is known as a Taking Over Notice or a Certificate of Practical Completion.
When to Issue Certificate
Once the construction is completed the contractor informs the engineer the taking the work. Thus, the engineer to the project notifies the employer of the completion of the project and the requirement of the taking over.
Generally, the taking over is done after the final inspections and testing are done. The employer generally attends to the final inspection and takes over the work as he has to take of the work.
During the inspection done with the participation of the contractor, engineer, and employer, some rectifications may identify. Those will be informed to the contractor and asked to rectify before the taking over.
Once the contractor is informed that he attends to the rectifications identified during the final inspection, the engineer or both the engineer and employer may inspection the rectification and accept the work.
After that contractor will hand over the project to the employer. It will be done by taking our certificate. The taking-over certificate is usually signed by the contractor, engineer, and employer.
Why Contractors Need Taking Over Certificate
The taking over is the certification to the contractor of completing the work as per the agreement signed with him and the employer. With the issuance of this certificate, the contractor is released from his responsibilities on the construction and the site.
Until the employer takes over the project, its responsibility will remain with the contractor. Further, any loss or damage to the property beyond the control of the contractor will also become the employer’s responsibility.
Though the taking over certificate is issued, the contractor is responsible for attending to the issue rise during the defect liability period. In construction, about 5% of contractors’ payments are held as retention which may be released at the end of the defect liability period.
There are practices of releasing 100% or 50% of the retention money to the contractor on the submission of an acceptable guarantee by the contractor. This could be done as per the terms of the contract agreement. For this process also, the taking over should have been completed.