Commencement date

Commencement date
See also
Interim certificate Certificate of acceptance Denied boarding compensation Executed agreement Contract note Substantial completion Confirmed letter of credit Notice of cancellation Advance payment bond

Commencement date is a date shown in contract when the described activities should begin (start time of completion). The contractor has to be prepared to begin the contract realization (e.g. start a project) on the commencement date. Usually commencement date is fixed by engineer . Not beginning at that date can be related to penalty.

Scheduling work after commencement date

The commencement date doesn't have to be stated in the contract. Sometimes end date is enough and contractor is able to create project schedule or calendar date of completion based on it. However, in more complex projects it is good to state commencement date.

Penalties

The commencement date is also an obligation for another part of the contract. It is the case if the place of construction or place of service has to be prepared before commencement date by the purchaser. If the place is not ready, purchaser cannot ask for penalty from contractor .

Guides for contractors

In guides for contractors, there are mentioned several subjects connected to commencement date :

• The commencement date should be established after 42 days from receiving letter of acceptance by the constructor,
• Within these 42 days employer should accomplish his arrangements about commandment to work,
• The commencement date does not have to be established after 42 days from receiving letter of acceptance by the constructor, if different agreement is stated in particular conditions,
• If there is no letter of acceptance, the contract agreement is equal to letter of acceptance,
• If there is no letter of acceptance, the signing contract agreement date is equal to signing letter of acceptance date,
• The commencement date should be communicated to the contractor by an engineer not later that in 7 days notice,
• Commencement date does not mean that work will actually commence that day, but it is start date of term of the contract,
• Start of work might be set in work order document and is happening after work commencement date.

References

• Applying IFRS. A closer look at IFRS 16 Leases. A closer look at the new leases standard (2018), EY Building a better working world
• Department for Business and Innovations & Skills (2010), Common commencement dates. Guidance for policy makers, Department for Business and Innovations & Skills, United Kingdom
• Griffith, R. L., Lee, L. M., Peterson, M. H., & Zickar, M. J. (2011). First dates and little white lies: A trait contract classification theory of applicant faking behaviour. Human Performance, 24(4), 338-357
• Institution of Civil Engineers (2002), Ice Conditions of Contract Term Version: Guidance Notes, Association of Consulting Engineers and Civil Engineering Contractors Association, Great Britain
• Pangalangan R. C., Kesia-Mbe Mindua A., Schmitt B. (2016), Situation in the republic of Mali in case of prosecutor, International Criminal Court, Mali
• Robinson M. D. (2011), A Contractor's Guide to the FIDIC Conditions of Contract, John Wiley & Sons
• Totterdill B. W. (2001), FIDIC User's Guide: A Practical Guide to the 1999 Red Book, Thomas Telford

Author: Weronika Burzawa