Complete Project Administration Process

External party assessment of the construction project is necessary to verify that the work done meets the industry regulatory framework, jurisdictional requirements, and quality control standards. Essentially, external certifiers are engaged in construction projects to provide an unbiased evaluation and verify that the work has been completed satisfactorily through documentary evidence, such as reports and certificates.

These certification and inspection activities must be accomplished before a project can be considered complete. Therefore, all inspection and certification activities conducted by external parties must be sufficiently recorded and acted upon in accordance with the contract agreements. 

As a supervisor, you will have to oversee inspections done on site by these external parties. You have to be familiar with who these external parties are and the extent of activities they are allowed to do. You will also have to maintain constant and effective communication with these external parties to ensure that everything goes smoothly. Moreover, you also have to administer the rectification work required based on the result of these external party inspections.

The section will discuss the specifics of recording work defects notified by external parties, establishing liabilities and remedial action, and developing inspection checklist.

External Party Inspectors 

Who are the external parties expected to conduct inspection of construction work?

Client-hired quality control inspectors

Depending on the contract, the client may choose to perform their own quality control check in conjunction with the contractor’s quality control process. In this case, the client may hire an external quality control inspector to act and perform inspections on their behalf.

Trade-specific inspectors or experts

Some construction work (e.g. plumbing, waterproofing, structural components) need to be inspected and certified by experts (e.g. experienced tradesmen and engineers) to make sure that all components of the project have been properly installed and completed. Furthermore, inspection certificates for these trades or work are part of the documentation required in assessing whether the building is suitable for occupancy.

Trade-specific inspection certificates include:

• Structural work certified by qualified engineers (e.g. footing design, framing design, roof design)
• Waterproofing for wet areas
• Glass in windows and doors (provided by supplier)
• Timber treatment where necessary
• Termite management system where necessary
• Roof trusses – from manufacturer
• Hydraulic certificates
• Smoke detector certificate of installation
• Cadastral survey report where required or requested
• BASIX Certificate for residential projects

Building certifiers

Building certifiers are responsible for conducting mandatory inspections during the construction period. They are also responsible for the approval of building work and making sure it complies with the approved building plans and standards. Building certifiers also administer the final building inspection during completion and assess the projects’ compliance documentation, including the trade-specific inspection certificates mentioned earlier. In general, a building certifier can:

• assess and approve plans relating to new or altered buildings
• inspect stages of work, aspects of stages or aspects of assessable work, including mandatory stages for class 1a single detached buildings:
  • foundations and excavation (footings) – before footings are poured
  • slab – before concrete is poured
  • frame – before the cladding or lining is fixed, or masonry construction begun
  • final – when the building work is completed
• provide certificates of inspection to the homeowner, builder and local authority
• issue enforcement notices where required
• give final approval for a building to be occupied

Inspections conducted by building certifiers are largely related to approval and certification of construction work. It must be noted that building certifiers are not responsible for ensuring a contractor is complying with the contract (role of the superintendent and contracts administrator), or for quality control and job site supervision.

It must also be noted that the functions and title of building certifiers/surveyors vary for each State and Territory. For example, in New South Wales, the building certifier responsible for mandatory inspections and issuance of occupancy permit is called the Principal Certifying Authority (PCA). In Victoria, this function belongs to the Relevant Building Surveyor (RSB). In the Australian Capital Territory, the Principal Building Surveyor (PBS) performs a similar function except that the PBS cannot issue an occupancy permit. It is always best to consult with local legislation to better understand the obligations of the building certifier in the local context.

Local council

The primary concern of local council inspections is to regulate construction activities and monitor their impact on public spaces. Local councils would inspect and approve temporary structures (e.g. scaffoldings), road openings, barricades, and hoisting activities that are deemed to affect public activities.

Additionally, when the local council is appointed by the owner (i.e. the client) to act as the certifier, then the local council will also be responsible for mandatory building inspections during required stages of construction and for conducting the final building inspection.

Recording Work Defects Notified by External Parties 

After conducting their inspection, the external party would notify the client and the contractor of the inspection results. These results usually specify which part of the construction has been completed satisfactorily, which requirement still needs to be met or what defect has been found and needs to be rectified.

It is always important to properly record the results of external party inspections. The details of these results would be used as the basis in establishing how corrective actions would be made and who would be responsible for these corrective actions later. As a supervisor in charge of the site, you are expected to be efficient in recording the results of external party inspections.

Generally, recording work defects notified by external parties will follow the same procedures as recording defects from inhouse inspections, only with the extra task of communicating with external parties.

To effectively record work defects notified by external parties, you need to remember and implement the following strategies before, during, and after the external party inspection:

Establishing liabilities and remedial action required 

Defects that are identified during the external party inspection will inevitably need to be rectified. To rectify defects, the client, contractor and subcontractor must come to an agreement about who is liable for the defects and consequent rectification work. 

Establishing liabilities for defects may sometimes cause disputes between the organisations involved in the construction project. Legal disputes may be costly for all organisations involved. It is, therefore, best to avoid disputes by implementing effective communication and taking organised steps in resolving work defects.

As a supervisor, you will be overseeing the rectification work on site; thus, it is important for you to understand how liabilities for defects and remedial action are established.

Establishing liabilities and planning for remedial action generally follow these steps:

Development of inspection checklists

After the rectification work is completed, the external party will have to run another inspection to make sure that the defect has been rectified properly. Before the external party can conduct their second inspection, the contractor must make sure that the rectification work has been, indeed, done properly. This will require the contractor to conduct their own inspection and assess the rectified work to make sure all issues are resolved before the external party assessment.

As a supervisor working for the contractor, this inspection task may be assigned to you. You will need to use updated checklists and you may even have to develop checklists that will be more aligned with the requirements of the external party inspectors. 

Generally, developing checklist for inspection of rectified work will require you to: 

1. Identify what your checklist is for. Keep in mind what the checklist is for and stay within that scope. In this case, you already know that the checklist is to make sure that a specific defect is properly rectified; therefore, stay within that scope.
2. Incorporate items from the checklist used by the external party inspector into your own. Review the external party inspector checklist and include the specified work items in your checklist. This is the best way to ensure that you will be able to address the issues they have noted.
3. List down the attributes that will indicate work compliance. For example, for a defective pipe, you know that it has been rectified when it has been replaced with one that has no visible cracks and no leaks.
4. Include deliverables in your checklist. Include documents that prove the suitability of work done or materials used when applicable.
5. Categorise the items in your checklist and make them concise. Putting work items in the same category and keeping the language concise will help you use the checklist more efficiently.
6. Assess and update your checklist. Make sure the items in your checklists are updated and are parallel to the external party inspection checklist.

Clients must be informed of defect and rectification procedures that will be implemented in the project, especially those identified during the completion of significant stages of construction. In our discussion about variations, you have learned that before variation work can proceed, there must first be a written approval from the client. The same rule applies for rectification work— before it can be implemented, it must be first discussed with and approved by the client.

After the rectification work is completed, the client must be immediately notified, as they will ultimately decide whether the rectification work is satisfactory. Consequently, their response about the rectification must be well documented as a reference or safeguard against disputes that may arise. 

This section will discuss the general procedures in notifying client of defects and recording their response to completed work.

Notifying client of rectification 

To better contextualise the general contractor and client dynamics for rectification, you should study the following process:
 

This is, in general, how the client and contractor deal with rectification procedures for defects identified during the significant stages of construction and after practical completion.

Regardless of whether the rectification happens before or after the project completion, ultimately, the goal of the rectification work is the client’s approval. Therefore, once the rectification is complete, the client must immediately be notified so that they can assess the work.

To notify the client of rectification completion, you must:

• Formally express the completion in writing. Provide the client with a document stating that the rectification work has been completed. Specify the date of completion, as well as the work done. Whenever applicable, mention the relevant rectification request previously sent by the client.
• Send the client an email notifying them of the completion of rectification. Attach a copy of the notice in this email. 
• Call the client or their representative. This is to advise them that the rectification work has been completed.

While notifying the client of the completion of rectification work, make sure to discuss how the client would want to proceed from this point forward. Address the following questions or similar concerns:

• Will they need to conduct a formal inspection?
• When would they assess the work?
• What will be the basis of their approval?
• Will they immediately issue the document stating their approval?
• If the client does not approve of the rectified work, what is the contractor expected to do?
• Will the contractor be charged if the rectified work is still found defective?

Again, for the rectification process, it is important for the client and the contractor to have an effective and open communication in order to avoid disagreements. It is always best to respond promptly to requests and issue notifications quickly for immediate discussion and resolution.

Recording client’s feedback on completed work 

Regardless of whether the client approves the completed work or not, their response must always be properly documented. Client responses will serve as important guides when further rectification is needed. They will also serve as basis for resolution should disputes arise in the future.

To effectively record client’s feedback on completed work:

1. Keep a constant and consistent communication with the client. Ask for their comments on the rectification procedures, schedule and other details. Consequently, keep a record of all important communication. Save emails and documents received from the client.
2. Request for written documents of their feedback. Make sure all approval or further instructions from the client have been given in writing and signed by relevant people. File these documents in an organised manner and be sure to make electronic copies.
3. Log details of their feedback on the site diary. When the client issues their feedback, make sure that relevant details (e.g. date, document number, name of client’s representative) are recorded in the site diary.

As mentioned in the previous chapters, it is always best to communicate and record feedbacks through writing them down in documents. This also applies to the dynamics between the client and the contractor when arranging rectification work.

In the previous section, the goal for every rectification work is to get the approval of the client. In some cases, the work will be deemed satisfactory by the client after one rectification. However, some rectification work may be quite complicated that the client will order further work to be done. Thus, it will be up to the contractor to implement procedures that would result in the client’s approval. As the supervisor in charge of the site activities, you are expected to oversee the implementation of such procedures.

To make sure that the rectification procedures will result in client approval (where this was not the initial response), you need to:

1. Review your initial rectification plan. Determine what went wrong with the initial rectification plan and identify its blind spots. What procedures could have prevented further damage? What procedures implemented have unexpectedly aggravated the defect?
2. Be knowledgeable in the construction methodologies. Consult experts and experienced tradesmen in your team about the rectification procedures. Familiarity with the work makes it easier to develop solutions and include them in the rectification procedures.
3. Attempt to correct the defect through solving the cause, not the symptom. For example, wall paint that began to peel off three days after application cannot be resolved completely by just putting on a fresh coat of paint over it. Peeling may be caused by insufficient surface treatment. Therefore, the peeling paint must be scraped off and the surface must be treated sufficiently this time, so that new paint can be applied.
4. Include backup procedures in your rectification plan. Be ready to implement an alternative procedure when things do not go according to the original plan. For example, you should know what to do when adding adhesives does not solve the problem of tiles falling off. You might have to change the adhesive material you are using or rework the surface on which you attach the tiles. 
5. Have the new rectification plan reviewed and approved by the client. The client would also provide helpful feedback on the rectification and would usually tell you what they expect out of this rectification procedure.
6. Make sure that the team in charge of the rectification understands the procedures. Explain the instructions clearly and appoint an experienced worker to lead the team. Make sure they also understand what went wrong in the previous work. Moreover, make sure that you are able to communicate the work goals plainly to every member of the team.
    

Once the construction activities are nearing completion, the construction project is drawing to a close. Therefore, before handing over the finished building or structure, you need to be certain that requirements agreed upon in the contract are fulfilled. You need to confirm this with relevant company personnel as well as the client. In doing so, contract issues, especially a breach in contract can be avoided.

Financial Requirements

Make sure that all payments set out by the contract have been settled before the building or structure is handed over to the client. This may include:

• Settling progress payments with clients
• Processing and paying invoices (e.g., tax invoices, supplier invoices)
• Resolving payment and other financial disputes
• Providing payments to contractors and subcontractors
• Other financial requirements defined in the contract

 
Legal Requirements

All, if not most, contracts state to abide by legal requirements of state/territory and the national regulations. Therefore, you need to ensure that the building itself and the construction works abide by the laws and regulations set forth by the regulating authority. Significant legal obligations you should consider are:

• Health, Safety, Security – Make sure that construction works abide by health, safety and security requirements for all individuals involved in the project, guaranteeing the well-being of workers and potential. For example:
  • Check the building or structure, once completed, if they are safe to be used. 
  • Make sure all WHS incidents are documented, assessed and resolved.
  • Consult WHS officers for concerns to be disputed or resolved.
• Quality and Performance – The building or structure should meet the building industry standards set by the government. Some construction quality standards include:
  • National Construction Code, specifically the Building Code of Australia
  • Australian Standard (AS) and International Standards (ISO)
  • Specific Standards defined by the State/Territory
  • Organisational and Contract-specific Standards
  • You should routinely perform quality control reviews and audits to ensure that construction is done as regulated by these standards.
• Environmental Impact – The construction project should also abide by environmental regulations, making sure that processes involved in the project promote the preservation and sustainability of the environment. For example, ensure that construction wastes are properly disposed of according to environmental and waste regulations. Seek advice from environmental officers for specific concerns related to the project.
• Industrial Relations – As discussed before, industrial relations focus on the work-related obligations of the employer to the employee. Therefore, make sure that all employee benefits are provided and settled, such as compensations and entitlements.

Practical completion

An important aspect of the contract that can confirm if requirements are fulfilled is the contract’s practical completion statement.

In general, a construction project may be considered practically complete when the construction work has been completed in accordance with the contract, plans and specifications. If there are any defects or omissions identified, they should only be minor. The building as a result, can be reasonably used or occupied for its intended purpose, even with the presence of the defects. 

The project’s practical completion should be defined in detail in the contract and is one of the requirements that should be reviewed if it is being met. Take note, though, that conditions for practical conditions may vary, depending on a number of factors, such as the type of contract used and client preferences.

As an example, if your project is under the AS 4000 Contract, that contract defines practical completion, in summary:

• Construction works are complete, except for minor defects.
• All necessary tests have been performed.
• These tests give out satisfactory results.
• Important documents and information have been provided (e.g. certificates).

A project's practical completion statements is a key component of the contract and, by extension, the project. It provides the specific criteria for a project to be considered ready for handover. When these criteria are specific, you can easily review the conditions for practical completion when the building is near completion, identify which conditions have been achieved and focus more on those that are yet to be achieved. In doing this, you are already confirming which contract requirements are being (or yet to be) fulfilled.

Notice of Practical Completion

When the contractor has deemed the construction near completion, the contractor usually notifies the practical completion to the superintendent. The contract may specify the method of notifying, usually through a written notice of practical completion. 

It is recommended that the contractor should submit a notice in advance, at least 14 calendar days prior to the completion date. You should also submit a notice of practical completion on the day of completion. 

Once the superintendent receives the notice of practical completion, they will conduct an assessment to confirm if the construction works have achieved practical completion. This is usually done through an inspection of the building or structure.

Practical Completion Inspection

To be able to confirm if practical completion has been achieved, the contract usually requires inspections be made as soon as the contractor has deemed the construction as practically complete. A practical completion inspection (PCI) assesses how the building has been constructed. It ensures the following:

The building is safe to use or occupy;

It is built in accordance with the Building Code of Australia, as well as other relevant Australian Standards; and

The building is constructed in compliance with relevant building laws and regulations.

Practical Completion Certification

Once the practical completion inspection has been carried out and gave satisfactory results, the building inspector and the contractor can issue a certificate of practical completion. 

The certificate of practical completion varies from state, territory and organisation, but its essence is it validates that the building has met the conditions of practical completion set forth by the contract, as well as regulations set forth by the government and building industry. This certificate is one of the documents required when handing over the building or structure. 

As a reference, a sample certificate of practical completion from the Queensland Building and Construction Commission is available on the next page. You can access a copy of this through this link from their website.

 
A sample of a certificate of practical completion

Practical completion inspection (PCI) should be scheduled and performed as soon as a notice of practical completion is received. A PCI ensures that the building or structure satisfies regulatory and contractual requirements. It is conducted by local inspection authorities, who are defined in the contract, and may include one or more of the following: 

• Client-hired Inspectors – These are the client’s personally chosen private building inspectors to perform the quality check, in conjunction with other local inspectors.
• Trade-specific Inspectors – They are inspectors who are experts in a particular construction work (e.g. plumbing, waterproofing, structural components) and will only inspect the components specific to their expertise.
• Building Certifiers – They are responsible for conducting mandatory inspections during and after the construction period in the state/territory your project is in. They make sure the building complies with the approved building plans and standards and certify the approval of the inspection. Most likely, a contract will require at least the inspection be done by a building certifier.
• Local Council – They regulate construction activities and monitor their impact on public spaces. They also inspect and approve temporary structures (e.g. scaffoldings), road openings, barricades, and hoisting activities that are deemed to affect public activities.

Defects Liability Period

Take note, though, that there are instances where local authorities may still find building defects or incomplete work during practical completion. In these scenarios, the works enter the defects liability period, wherein the contractor is entitled to rectify minor unfinished or defective work, but the building is considered occupiable by the inspectors. The contractor has an obligation to finish construction works so that payment may be made to them at 100% completion of the building, provided no further defects are found. In cases where major or significant works are defective or unfinished, a practical completion certificate will not be issued and rectification should be made based on the sections under Chapters 4 and 5 of this guide.

Communicating with Local Authorities

Here are some pointers in communicating with the local authorities to be able to arrange the practical completion inspection of your project.

Request inspection in advance. 

Especially for building certifiers, you and your contractor should schedule the practical completion inspection in advance, as soon as you are notified of the building or structure’s practical completion. This gives the inspectors enough time to prepare for the inspection. As discussed in the previous section, the notice of practical completion signals the need for an inspection. Therefore, the inspection should be scheduled at least 14 days from the completion date.

Practise communication etiquette. 

Observing proper communication shows respect towards the receiver. When needed, formalise the way of contacting and addressing building inspectors to show recognition of their authority, whether in writing and in speech. Seek appropriate permission when doing something that concerns them, especially on the day of inspection itself.

Organise contacts. 

Research contact details of the building inspectors. It is good practice to save notes of these contacts for easy retrieval. When possible, ask them their preferred method of contact. This shows that you value the convenience of the authorities as they tend to have a busy schedule.

Prepare necessary documents and forms. 

Forms such as building plans, the construction contract, notice of completion, site plans should be prepared as they may be needed by local authorities conducting the inspections to check if requirements meet not only building standards, but specific specifications set by the project itself. Make sure that copies of these documents are prepared prior to the date of inspection and are given to the inspectors at the same date.
 

Once the certificate of practical completion inspection has been issued, the finished building or structure is now ready for handover. The handover is the final stage of a building project wherein the building is now turned over to the client or owner who then takes ownership of the building. The handover, as it is the final stage, is also when the client will make the final payment to the builder. 

But in order for the client to give out the final pay, it is usually required to hand over all documents and information the client needs with regards to the building. Therefore, you should prepare all necessary documents, such as certificates, guarantees, warranties, termite protection forms, etc. Listed on the table are the different documents and information that should be prepared to be issued to the client during handover.

For you to be able to hand over these certificates and documents, here are some pointers to be able to prepare them properly:

Check if details are filled out correctly and accurately.

• Make sure that all documents and forms are appropriately completed so that information can be conveyed as accurately as possible. This is especially true with instructions to the owner as well as contract details of the contractor and other relevant people of the project
• Check the documents if they have the appropriate signatures in them.

Some documents and forms are not made official and legally-binding until they are signed by all parties. If in case signatures are not filled out, you should consult the relevant parties to sign them. 

• Make sure that details are updated.

Some information might be obsolete or might have been changed over the course of the project, and this should be updated. Compare documents with other records and reports to make sure that information is up to date with the current details and results.

• Review with relevant people if needed.

Consult other stakeholders to double check information on the documents, to ensure consistency of details across the documents and with the stakeholders as well. You may also consult those who are experts or who have previous experience in the field relating to the document (e.g. consulting safety officers for safety documents).