Asked by the Customer on 11-10-2019 14:55:00
Question posted in the Property Law category relating to Gauteng

Good day,

I've been requested by my agent and builder to sign the practical completion letter for my house because they need money to finish the house. There is only the kitchen units, stove, bedroom cupboards, garage doors and any other snags which we are still to pick up. THey have given me an undertaking to sign that states that they will finish the remaining works once they are paid. Can i trust this?

Further information relating to Question:

Practical completion letter reads thus:

We hereby undertake to ensure that the following snags will be rectified/installed prior to the house being officially handed over to you.

1. Built in cupboards in all the 3 bedrooms
2. kitchen units plus fitted stove/oven hob in the kitchen
3. Garage sliding doors and external wooden garage door.
4. Any other snags as identified by the developer and yourself and the builder

Posted by Att. Patrick on 11-10-2019 15:19:03

Hi there and thank you for your question,

I am a practicing attorney based in South Africa and I will assist you with your question. Please feel free to ask as many follow up questions in order to clarify your question. If you have a new question, you must please open a new thread.

Practical completion confirms the completion of construction works on a project.

So the question is, HAVE they actually completed the construction work on your project? By signing the letter, you are agreeing that they have... so it would then come down to whether or not you trust them to come back on site to complete the work!

If you want to take the risk, and you trust them, then you can sign the letter. They obviously want the letter signed so they can get the last bit of money on the project now, before the project is complete. 

The builder can't force you to sign it. But he can ask - and that's what he is doing.

It really comes down to how you feel and whether you want to take the risk.

If there is a part of the answer which you need more advice on, or clarity please continue in this same thread instead of opening a new question.

Att. Patrick

Please remember this is a dialog if you have follow up questions please use the REPLY button and ask. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered. I hope you found my answer helpful, and you have finished asking your questions, please click on the GREEN ACCEPT button in order to mark the question as closed.

Thank you for that. But legally, is the letter undertaking that will complete the construction binding? meaning can i use it to take them to court later if they dont keep their promise?

Posted by Att. Patrick on 11-10-2019 16:22:43

Yes, that letter is binding. But if he refuses to comply, then you will need to take him to court to enforce it!

If you sign the practical completion certificate, then the job would be certified finished and he will be paid. Then, what reason will he have to come and finish your job?