CERTIFICATE OF TURNOVER & COMPLETION: Provisions, Inclusions, Limitations, and Exclusions Every Property Owner Should Know
- Gabriel Mikael
- Jun 2
- 3 min read
In any construction or real estate project, the Certificate of Turnover and Completion is a critical document that marks the official handover of a unit or building from the contractor or developer to the owner. It's more than just a symbolic moment—it carries legal, financial, and operational implications.
Whether you’re a contractor, developer, or homeowner, understanding this certificate’s provisions, inclusions, limitations, and exclusions is key to a smooth and successful transition.
📜 What Is a Certificate of Turnover and Completion?
The Certificate of Turnover and Completion is a formal document issued at the end of a construction project, certifying that the scope of work is completed and that the unit or structure is ready for occupancy or use. It is usually signed by both the project owner and contractor/developer.
This document often accompanies other forms like the Certificate of Acceptance and is required before occupancy permits, warranties, and final payments are processed.
✅ Standard Inclusions in a Certificate of Turnover and Completion
A proper certificate will typically include:
Project Details– Property location, description, and project name.
Completion Date– The date the project or unit was completed based on the approved plans.
Statement of Completion– Confirmation that all agreed works under the contract have been finished.
Signatures of All Parties– Developer/contractor, owner/client, project manager, and sometimes third-party inspectors.
Attachments– Final punchlist report, as-built drawings, occupancy permit (if available), manuals, and warranty documents.
Acknowledgment of Property Handover– Confirmation that the property keys, documents, and access rights have been transferred.
📃 Key Provisions in the Certificate of Turnover and Completion
Some important provisions commonly included are:
Finality of Completion– Declares the project complete and compliant with contract specifications and local building codes.
Warranty Activation– Indicates when the warranty period begins (usually upon signing).
Retention Payment Clause– Triggers the release of retention money, if all punchlist items are addressed.
Use and Occupancy Approval– Acknowledges readiness for use, pending government permits such as the Occupancy Permit.
Responsibility Transfer– From this point forward, the owner assumes full care and maintenance of the unit or building.
⚠️ Limitations of the Certificate
Despite its importance, there are limitations to this certificate:
Does Not Cover Hidden Defects– Latent or unseen defects may only be addressed under the separate warranty clause.
Dependent on Final Inspection– The certificate is often conditional on punchlist clearance and post-inspection approval.
Occupancy Permit Not Guaranteed– This certificate is not a substitute for the official occupancy permit from the local government.
Does Not Waive Warranties– Signing the certificate does not eliminate the contractor’s obligations for warranty repairs.
🚫 Common Exclusions
The Certificate of Turnover and Completion generally excludes:
Owner-initiated changes or additions– Works outside of the original scope or contract (e.g., additional rooms or features).
Post-turnover maintenance– Future issues due to lack of proper care, misuse, or natural wear and tear.
Furniture and Appliances (if not specified)– Unless listed in the contract or turnover documents.
Force Majeure or Environmental Damage– Floods, typhoons, earthquakes, or other disasters occurring post-completion.
🛠️ Tips Before Signing the Certificate
Perform a Thorough Walkthrough – Check all utilities, finishes, and features personally.
Consult a Technical Expert – Have an engineer or inspector join the final inspection.
Verify Punchlist Completion – Ensure all listed deficiencies are fixed.
Check the Warranty Start Date – This date affects how long you can request repairs.
Collect All Supporting Documents – As-built plans, manuals, warranty booklets, and utility registrations.
🏠 Final Words: Completion Is Just the Beginning
The Certificate of Turnover and Completion is your assurance that your home or building is ready for its next chapter. Understanding its provisions, inclusions, and limitations helps protect your investment and ensures that both parties fulfill their obligations with transparency and professionalism.
Comments