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Can my main contractor take delay damages without a non-completion certificate?

Not if your subcontract makes a certificate or notice of non-completion a condition of the charge, and many do.

Updated: . By Jack Butler-Kettle, Construction Claims Consultant.

The answer

Under the JCT main contracts, the contract administrator issues a Non-Completion Certificate when the works miss their completion date. Without it, the client cannot take liquidated damages from your main contractor. A later extension of time cancels the certificate, and a new one is needed if the works are still late. The JCT subcontracts work differently. There is no certificate, but your main contractor must notify you that you have failed to complete in time. Bespoke subcontracts often copy the main contract wording, certificate and all. NEC subcontracts need neither: where they include delay damages, the damages run from the completion date. So read your own clause, and list every step it requires before a charge. That can mean a certificate or notice, a warning that damages may be taken, and a Pay Less Notice in time. Check each step was taken, in time and in the right form. A missing step can stop the deduction, even where the delay was yours. Whether a step is a strict condition is a question for your solicitor.

Example

Illustrative example. The scenario and figures are invented.

The facts

A flooring subcontractor finishes 3 weeks after its completion date. Its bespoke subcontract copies the main contract: damages of £1,500 a week, only after the main contractor certifies non-completion in writing.

What happens

  1. The main contractor deducts £4,500 in its next Pay Less Notice, with no certificate issued.
  2. The subcontractor writes the same day, citing the clause and the missing certificate.
  3. The deduction is reversed in the next payment.
  4. Before any certificate is issued, a 1-week extension is granted. The certificate is then issued against the extended date.

The charge in figures

ItemWeeksAmount
Deducted without a certificate3£4,500
Extension granted before the certificate1£1,500
Charged after the certificate2£3,000

The outcome

The £4,500 comes back. £3,000 is charged in a later cycle, once the certificate is issued against the extended date.

To have every step behind a delay damages charge checked, and the deduction challenged where one is missing, see our Delay Damages Claim service.