FIDIC / Legal Reference: FIDIC Red Book Clause 11.9
The certificate issued by the Engineer at the expiry of the Defects Notification Period, confirming that the contractor has fulfilled all its obligations. The Performance Certificate triggers release of remaining retention and expiry of the Performance Security.
What it means in practice
Under Clause 11.9, the Engineer is required to issue the Performance Certificate within 28 days after the latest of: the expiry of the DNP, and the date on which the contractor has supplied all required documents. The Performance Certificate is the only document that constitutes acceptance of the Works — the Taking Over Certificate does not constitute acceptance.
The significance of the Performance Certificate is primarily financial: it triggers release of the second half of the retention (typically 2.5% of the contract sum) and enables the contractor to close out the Performance Security bond. It also marks the end of the contractor’s obligation to maintain professional indemnity and public liability insurance.
Where disputes arise
Unjustified refusal or delay in issuing the Performance Certificate is a common employer tactic to retain leverage in final account negotiations. Contractors should pursue formal notice under the contract and, if necessary, referral to the DAB or arbitration.
UAE Context
In UAE construction projects, Performance Certificate delays sometimes arise from pending municipality completion certificates or unresolved authority NOCs — matters that may be within the employer’s control and responsibility.
Related terms
Withholding of the Performance Certificate can have significant financial consequences. e-Basel advises contractors on entitlement and options available if the Engineer fails to act.
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