What happens if the developer serves a notice to inspect in relation to golden brick and practical completion in light of the current restrictions on movement due to COVID-19?
Under the terms of most golden brick contracts, development agreements and build contracts the buyer’s employer’s agent is under a strict deadline to inspect and certify that golden brick or practical completion has occurred. Failure to inspect in many instances will result in a “deemed acceptance” that triggers a completion payment within days thereafter.
Realistically it is likely that the ability of an employer’s agent to inspect works will be curtailed now. What will the parties do now at this time? Developers will have their own concerns and understandably wherever possible they will look to ensure cash flow particularly large sums due on golden brick or practical completion.
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