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Dear Michael
1. A new BG equivalent to 5% of Contract value will be issued by Pathom to HRB at Completion until the end of 12 months Defect Liability Period.
2. Upon completion of all rectifications and issuance of Final Certificate by the Project Consultant, BG equivalent to 5% of Contract value would be returned to Pathom.
3. Up to 25% of each monthly progress claim will be withheld as retention sum from the progress payments. The claims would be evaluated and certified by a quantity surveyor and certified by the Project Consultant. The invoice shall be issued based on certified amount.
4. There will be no retention sum on completion provided Pathom issues a BG equivalent to 5% of total contract value until the end of Defects Liability Period.
5. Upon completion of the project:
a. Accounts are to be finalised by the QS and certified by the consultants
b. Architect is to issue Practical Completion Certificate and compliance certificates (if any)
c. Lead consultant to provide HRB with all close-out documentation (O&M manuals, warranties and guarantees, as-built drawings etc.)
d. Main contractor to complete the necessary T&C and rectification works (to the satisfaction of both the consultants and HRB) and hand over the site to HRB.
Regards
George Lee
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