Department Refusing to “Take Over” Completed Project: Due Process and Deemed Handing Over

Theme: Project Closure; Module: Completion to Termination

Author: Dr. Pradeep Reddy Sarvareddy

Published Date: 18 Jan 2026

What can a Contractor do if the Department refuses to “Take Over” a completed Project?  How is the process of “handing over” completed?  Many Contractors struggle when the Department is not cooperating at this stage.  The Contractor is now in a legal dilemma, i.e., either continue working indefinitely free of cost or act logically as the Contractor deems fit.  But, such logical actions may not be legal and the Contractor may be penalised for abandoning the site.  Instead of going to Court for this situation, which may be costly or time taking, the Contractor can adopt the legally established process known as “due process” which could result in “deemed handing over”.  Then, the Contractor may also be able to demobilise legally from the site and move on to the next Project.  Understanding the Due Process is the difference between working logically or legally.

Most of the times we hear Contractors say that Departments have “forced” Contractor to do something.  Courts have also noted situations like these as “duress” and such other legal terms.  But what if the Department is not “taking over” the Project and the Contractor is “forced” to Work for free?  If you know the game, the Contractor can “force” the Department to “take over” the Project.

After the Contractor completes all the Works, the Department may refuse to take over citing some minor works or may not visit the site for inspection or may not record the finished / final works or may not takeover the Project.  Then, the Contractor should be smart and follow the due process, which will be then “forcing” the Department to “take over”, while legally such a forcing is actually the Contractors right and is legal.  NOTE THAT THE DUE PROCESS HAS TO BE FOLLOWED.  Otherwise, the Contractor may be considered to have “abandoned” the Project and the Contractor would most likely suffer. 

  1. Review the Contract for details like completion of Works, defects liability period, handing over process, authorised representatives, communication protocol, etc.
  2. Prepare the completion package like as-built drawings, test certificate, snag list, statement of completion, photos / videos of site, etc., as evidence that you completed the Work.
  3. Issue Notices to the authorised representative and keep proof of delivery. Send an email also as additional evidence. Courts need evidence. 
  4. The Notice should be clear and refer to the various contract provisions. Specifically provide all the details, even if you have to send a 10 kg packet of evidence via Speed Post with Register (which is similar to the erstwhile Registered Post with Acknowledgement Due).
  5. Mention your earlier attempts to handover and provide reasonable time to the Department as a final opportunity to handover. If the Department does not respond, clearly state your intention to demobilise from the site.
  6. Sometimes, removing of the equipment or demobilising the Plant & Machinery requires Department’s signature. If the Department does not provide such signature, move the Court or Arbitration for urgent relief to allow you to demobilise. This is where your evidence will support you.
  7. Better safe than sorry. Provide a second and final notice through an Advocate. If need arises, appoint an independent laboratory or organisation for the site inspection as additional evidence. 
  8. On expiry of the second and final notice period, the handing over is considered “deemed handing over”. Write this clearly in your Notices.
  9. If the Department starts corresponding with you stating some defects or not following due process, then do not get into an argument with the Department by more and more correspondence. Reply to the Correspondence firmly and prepare yourself for a legal battle.
  10. At any time, if you have to perform some Work (which may include rectifying defects or minor works which the Department informed you) after the Final Notice, because you want to avoid legal battle, be very cautious. Your actions may now contradict yourself and your legal position may weaken.
  11. A few tips like noticing if the Department has “put to use” the Project, i.e., opened the road for traffic, started operating the Water Plant, etc. This may be irrefutable evidence to support the deemed handing over through conduct of the Department.

Sometimes, extreme measures like these may be necessary.  This may be the only way that allows the Contractor to end the job cleanly, shut down free work and protect money and time.  International best practices follow time bound due process.  Courts have always supported the due process.  Sometimes, you may need to force the Department with due process to perform the job which the Department should have done.  Contractors rights are not something that the Department can take its own time to respond.  Time is money. 

Silence is not the answer.  Documents and Evidence.  Due Process.  Then, “the Start” of the legal battle.