Why do we need a letter of completion of work?

Construction and other industrial projects (oil and gas, mining etc.) are extremely hard work. Projects can span for many years, and involve thousands of moving pieces and interdependent parts. These projects are already extremely risky for all parties, involving large bets which can be quickly derailed by unexpected delays, quality issues and more.

So when one of these projects come to an end, all parties involved are ready to seal the deal and issue their letter of completion for work.

A letter of completion of work is issued and signed by project parties when the contractor is deemed to have completed all of the construction works contained in the contract.

The main reason we need a letter of completion for work in these construction and industrial projects is so that the project can be properly handed over, and so that liability and responsibility is handed over too. Letters of completion and these type of documents serve as the mechanism with which parties agree that that phase of the project is closed out - which is critical for disputes, contractor performance assessments and other important outcomes.

One of the difficulties in ending and completing these projects is that there are multiple stages of completion including:

  • Practical completion
  • Defects liability period
  • Completion of works
  • Potential latent defects

While we wont get into the mechanics of latent defects here, is it important to know that the letter of completion of work isnt necessarily the end of the project.

Even so, signing off on a letter of completion of work is an important milestone, and managing the letter of completion process smoothly and professionally can have a big impact on stakeholder relations and how well and legally the contract and project is closed out.

Because of this, youll find a letter of completion of work sample below, as well as a more modern approach to letters of completion.

Both methods and frameworks can be used to improve how you manage the completion of work procedures.

The better way to issue and manage a letter of completion of work

Many construction and industrial projects still use physical or email letters to manage these type of important communications. And these letters do a great job of establishing the formal communication required to communicate these milestones.

But where these types of letters of completion of work fall short is:

  • In providing the level of detail required to properly handover a project (all in one place)
  • Providing the right formatting and framework for making the information easy to digest
  • In making these documents easier to view, edit and share amongst other parties and collaborators

The letter of completion of work example below, which is often called a certificate of completion in construction, serves to eliminate these issues by turning your letter of completion into a smarter digital document - which more closely resembles your other important project information.

The letter of completion of work example below comes pre-built with all of the detail all parties need to effectively certify that the project has been complete.

Every letter of completion requires all of the important project details in the first section, the critical financial information in the second section, and then the official certifications and sign offs from the project parties.

You can view this better letter of completion of work example by hovering on the document and expanding it, or keep scrolling to find the more traditional letter of completion of work sample.

Letter

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