Completion, the final bill and the defect liability period

The last coat of paint is not the end of the contract. Three things follow it: the final bill, the defect liability period, and the release of everything the department has been holding. Each has paperwork, and the last one is the certificate you need for the next tender.

Completion

Write to the engineer stating the work is complete and asking for final measurement and a completion certificate. The engineer inspects, lists any incomplete or defective items, you attend to them, and the certificate issues with the completion date. That date ends the LD exposure and starts the DLP; get it right, and get it in writing.

The final bill

Prepared after final measurement: the whole work at your rates, including sanctioned deviations and extra items, less every payment made, less the deductions that apply. Check three things against your own record: every quantity in the final MB, every extra item's sanctioned rate, and the arithmetic of the deductions. The final bill is usually accompanied by a no-claim certificate: a declaration that you have no further claims under the contract. Sign it only when the bill includes everything you are owed; a claim not made before it is waived.

The defect liability period

For {{defect-liability-period|so many months after completion}} (12 is common for buildings, 24 or more for roads and some departments ask 60) you are responsible for making good any defect at your own cost, on notice from the engineer. Fail to attend and the department repairs it and recovers the cost from your security deposit. It is a period of low activity and real exposure: visit the work after the first monsoon, fix small things before they are noticed, and answer every notice.

Release of the security deposit

After the DLP ends, apply in writing for release of the security depositSecurity deposit (SD)Money held by the department for the whole contract as a guarantee of performance, commonly 5% of the contract value in Karnataka works. Part is paid at agreement, the rest deducted from bills.Read in the glossary → (cash, or return of the bank guarantee for cancellation). The engineer certifies that no defects are outstanding, and the division refunds or returns the instrument. It does not happen without the letter, and the letter is often forgotten; a division may hold deposits for years that nobody asked for. Put the DLP end date in your calendar on the day the completion certificate arrives.

The file at the end

Agreement, work order, hindrance letters, extension order, MB extracts, every RA bill statement, the final bill, the completion certificate, the deposit release, and the work done certificate. For a Class III contractor with six works, that is six files, and they are the whole case for Class II. Signed-in users keep them on BiddingView under Contracts, with bills and documents filed against each work and the certificate ready for the next bid.