Law Nine: A Project Isn’t Finished Until It’s Finished
The “never quite finished” scenario is not uncommon at all scales of projects. Missing or defective parts should not be treated as a problem relating to warranty unless final acceptance has been given. So, clients should not sign off on final acceptance if there is still outstanding work, unless it is with a defined list of outstanding work and a required completion date, attached to a conditional acceptance document. From a strictly accounting point of view, warranty covers the repair of items, supplied within a project, that fail after their acceptance and before the end of the warranty period, but it is a common accountant’s trick to try to push costs from the specific project ...
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