QUESTION

I also feel there should be changes to the wording in the current MMCD Platinum Edition volume II to clarify and change the requirements for deficiencies be included in the substantial performance calculations. Can the Contract Administrator use defects and deficiencies to prevent Substantial Performance from being achieved using 200% of the value of the deficiencies?

COMMENT

The definition of Substantial Performance in GC 1.67.1 is:
“means the stage of completion when: all work, as certified by the Contract Administrator, is capable of completion or correction at a cost of not more than: (1) 3% of the first $500,000 of the Contract Price; (2) 2% of the next $500,000 of the Contract Price; and (3) 1% of the balance of the Contract Price; and the Work, or a substantial part of it, is ready for use or is being used for the purpose intended.”

GC 18.4.3 says “In addition to other holdbacks as provided by the Contract Document, when considering Substantial Performance, the Owner may hold back from payments otherwise due the contractor 200% of a reasonable estimate, as determined by the Contract Administrator, on account of deficient or defective Work already paid for. This holdback may be held, without interest, until such deficiency or defect is remedied. The items of defect or deficiency and the amounts of related holdback shall be listed separately on the Payment Certificate.”