What is TCC, PAC, and FAC in construction projects ?

Following is the terminology explained in details:

Transmission Line

TCC: Technical Completion Certificate

TCC (Technical Completion Certificate) is issued when the project is substantially complete. This certificate signifies that the project has reached a stage where it is functional and can be used for its intended purpose, even though there might still be some minor outstanding works or defects that need to be addressed.

Substantial Completion: The project’s major components and systems are complete and operational, allowing the facility to be used for its intended purpose.
Start of Defects Liability Period (DLP): The issuance of the TCC marks the beginning of the defects liability period, which is typically a predetermined duration (e.g., 12 months). During this time, the contractor remains responsible for rectifying any defects that arise.
Payment Milestone: This milestone often triggers a significant payment to the contractor, though some retention money might still be withheld until final acceptance.

PAC: Preliminary Acceptance Certificate

PAC (Preliminary Acceptance Certificate) is issued after the defects liability period has ended and all identified defects have been rectified to the satisfaction of the client. This certificate indicates that the project has met the agreed-upon standards and specifications.

– End of Defects Liability Period: By the time the PAC is issued, all defects noted during the defects liability period should have been addressed and rectified.
– Final Inspection: A thorough inspection is conducted to ensure that all outstanding issues have been resolved. This inspection confirms that the project meets the required quality and performance standards.
– Retention Release: Typically, a portion of the retention money held by the client is released to the contractor upon issuance of the PAC, reflecting that the project has moved closer to full completion.

FAC: Final Acceptance Certificate

FAC (Final Acceptance Certificate) is issued when the project is fully completed and all contractual obligations have been satisfied. This includes addressing any final adjustments, corrections, and ensuring all documentation requirements are met.

– Completion Confirmation: The FAC confirms that the project has been completed in full compliance with the contract specifications and requirements.
– Final Payment: Any remaining payments, including the retention money, are released to the contractor upon issuance of the FAC. This marks the financial closure of the project.
– Warranty Period: The issuance of the FAC might also mark the beginning of a warranty period as defined in the contract, during which the contractor may still be responsible for addressing major issues or defects that arise.

Summary:

1. TCC (Technical Completion Certificate):
– Issued when the project is substantially complete.
– Marks the start of the defects liability period.
– Signifies the project is functional and can be used for its intended purpose.
– Triggers a major payment milestone, with some retention money possibly withheld.

2. PAC (Preliminary Acceptance Certificate):
– Issued after the defects liability period has ended and all defects are rectified.
– Indicates the project meets agreed-upon standards and specifications.
– Results in the release of a portion of the retention money.

3. FAC (Final Acceptance Certificate):
– Issued when the project is fully completed and all contractual obligations are satisfied.
– Confirms full compliance with contract specifications and requirements.
– Triggers the release of any remaining payments, including retention money.
– May mark the beginning of a warranty period.

Each of these certificates represents a critical step in the project lifecycle, ensuring the project is delivered to the client’s satisfaction and that the contractor fulfills all obligations before final payments are made.

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