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Project Commitment
Construction and other industrial projects (oil and gas, mining etc.) are extremely hard work. Projects can span for many years, and involve thousands of moving pieces and interdependent parts. These projects are already extremely risky for all parties, involving large bets which can be quickly derailed by unexpected delays, quality issues and more.
So when one of these projects come to an end, all parties involved are ready to seal the deal and issue their letter of completion for work.
The main reason we need a letter of completion for work in these construction and industrial projects is so that the project can be properly handed over, and so that liability and responsibility is handed over too. Letters of completion and these type of documents serve as the mechanism with which parties agree that that phase of the project is closed out – which is critical for disputes, contractor performance assessments and other important outcomes.