A poorly prepared construction certificate can halt the collection process for a project, lead to contractual disputes, or result in legal claims. And yet, in many companies in the sector, it remains a manually managed process that is not very standardized and relies on specific individuals who «know how it’s done.» In an increasingly regulated and digitized market, That's a risk that isn't worth taking.
This guide explains what construction certifications are, what the regulations say, how to prepare them correctly, and what skills the team needs to manage them thoroughly.
What are construction certifications?
A construction certificate is a technical document in which the contractor, with the approval of the Project Management Office, certifies the progress and cost of the work performed in a construction project over a specific period, usually on a monthly basis. It’s not just an administrative formality: It is the foundation upon which the project's cash flow is structured and the mechanism that determines when and how much each party is paid.
Certifications can be partial, when they document progress by phases or periods, or finals, when they certify that the work has been fully completed.
In what cases is a building permit required?
Building certification is required in any project that has a project management team and a formalized construction contract, especially for projects with a building permit. In the field of public works, the issuance and processing of permits are regulated more precisely and directly affect payment by the government. In private construction projects, the terms of issuance and payment schedules resulting from certifications must be included in the construction contract.
Types of Construction Certifications
| Type of certification | Scope | When it airs | Who signs it | What is it used for? |
|---|---|---|---|---|
| Monthly Partial Certification | Public and private | On a monthly basis during the construction project | Contractor + Project Management | To verify the progress of the work completed during the period and establish the right to partial payment. |
| Final Construction Certification | Public and private | Upon completion of all the work | Contractor + Project Management | Certify the completion of the project and settle the outstanding balance. Basis for the Final Project Certificate (CFO). |
| Certification of Completed Work (Public Administration) | Public Works | On a monthly basis, subject to management approval | Construction Manager + Contract Manager | Process the payment by the administration. Maximum payment period: 30 days from approval. |
| Certification by phases or milestones | Private project | Upon reaching specified contractual milestones | Contractor + Developer or Project Management | Link payments to the achievement of specific milestones (foundation, structure, exterior walls, etc.). |
| Certification of Settlement | Public and private | After the warranty period or upon termination of the contract | Contractor + Project Management | Adjust the total balance of the contract, including amendments, conflicting prices, and released withholdings. |
What do the regulations say about building certifications?
The regulatory framework in Spain is primarily structured through the Building Regulations Act (LOE 38/1999), which governs the role of the project management team and the technical documentation associated with the construction process. In the tax sphere, the Model 347 The reporting of transactions with third parties directly affects construction certifications, since these are considered payments toward the total price of the project and must be reported correctly. The Supreme Court has also ruled that Payments resulting from partial or final certifications may be corrected in the final settlement, which underscores the importance of accurate documentation from the outset.
What information must a construction certificate include?
A properly prepared construction certificate must include the Identification of the Work and Its Parts (developer, construction company, and project management firm), the certified period, the valued list of completed construction units including its measurements and unit prices, the cumulative amount certified to date, and the amount currently under certification, the retention of a security deposit as agreed in the contract and the net balance due.
Example of a construction certificate
A construction company is carrying out a housing development with a total budget of 2,400,000 euros. At the end of the third month, it has completed work valued at a cumulative total of 420,000 euros. The monthly certification lists the units completed during that period (foundation work completed, (ground floor layout), the value of each line item according to the price schedule, the cumulative total to date, the amount of the current certification (for example, 180,000 euros), the 5% withholding agreed upon in the contract (9,000 euros) and cash receivables (171,000 euros).
How is a construction certificate issued?
The production process begins with the measurement of the units of work actually completed during the period, which must be compared with the project and the contract price schedule. Based on this, the amount to be certified is calculated, the agreed-upon withholdings are applied, and the document is issued for review and signature by the project management team. Once approved, it is submitted to the developer or the government agency for approval and subsequent payment.
The most common mistakes in this process are the poorly justified measurements, prices applied incorrectly with respect to the contract and the lack of correlation between actual physical progress and the certified amount.
How do I get paid for a building inspection certificate?
In private construction projects, the payment deadline for progress payments is determined by the terms of the contract and by the Late Payment Act (Law 3/2004), which establishes a maximum period of 60 days from the date the document is received. In public works projects, the government has a period of 30 days to proceed with payment once the certification has been approved. Failure to pay or a delay in payment of certifications may constitute grounds for claims for late-payment interest and, in serious cases, termination of the contract.
Digitization of Document Management on Construction Sites
Manually managing certifications—using spreadsheets, emails, and paper documents—is today a drag on productivity and a source of errors. The integration of BIM methodologies into project financial management makes it possible to directly link the model's measurements to the certifications, automate the calculation of amounts and maintain real-time oversight of the project's financial progress. Tools such as Presto, with IFC model integration, make it possible to validate in phases using data extracted directly from the model, reducing the margin of error and processing time.
What skills does a team need to properly manage construction certifications?
Managing certifications rigorously requires combining technical knowledge of the construction process, proficiency in measurement and cost-estimation tools, understanding of the contractual and regulatory framework, and the ability to work with digital project management methodologies. This is not a single skill set: it is a competency that must be distributed among the the site manager, the surveying technician, and the project's financial manager.
Educa PHAROS Training on Document Management and Construction Certifications
For teams that need to update or formalize these skills, Educa PHAROS offers specialized training directly related to certification management and document management on-site:
