Vesting certificate is used in construction industry to transfer the ownership of any goods, plants or materials off site. Ownership shall be transfered to the Employer by a vesting certificate.
In construction projects, there are lot of long lead items such as special MEP items and etc. Therefore, advance payments need to be paid in order to receive those items on time in accordance with the program. When the Employer pay an advance for those long lead items (or approving material off site payment under interim payments), contractor issue a vesting certificate to the Employer to transfer the ownership of those paid items to the Employer.
This vesting certificate protect the Employer in case if the Contractor become insolvent to claim the ownership from relevant parties, even if those items are not reached to the coutry.
In construction projects, there are lot of long lead items such as special MEP items and etc. Therefore, advance payments need to be paid in order to receive those items on time in accordance with the program. When the Employer pay an advance for those long lead items (or approving material off site payment under interim payments), contractor issue a vesting certificate to the Employer to transfer the ownership of those paid items to the Employer.
This vesting certificate protect the Employer in case if the Contractor become insolvent to claim the ownership from relevant parties, even if those items are not reached to the coutry.
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