Practical completion
Practical completion is the point at which the works are finished enough for the client to take possession and use the building, even though minor snags may still be outstanding. It is a contractual milestone rather than a statement that every last item is done.
In practice for trades
Practical completion matters because of what it triggers, not because of what it describes. It starts the defects liability period, releases the first half of the retention, ends the contractor's liability for liquidated damages, and usually shifts insurance and possession of the site to the client.
The judgement call is how much snagging is compatible with it. Minor items that do not stop the client using the building normally are. Anything preventing beneficial use, such as no hot water or a failed electrical test, is not. There is no percentage rule, which is why the date gets argued over.
On a JCT contract the certificate is issued by the contract administrator or architect, not by the contractor. On a small domestic job with no formal contract there is often no certificate at all, just an agreed date. Either way, get the date recorded in writing, because two of the three things it triggers are money.
Worked example
A £60,000 refurbishment reaches practical completion on 12 March with four minor snags listed. Retention of 5% drops to 2.5%, releasing £1,500. The twelve month defects period starts, so the remaining £1,500 falls due the following March once the snags are signed off.
Related terms
- Retention in construction: the money released in two stages, the first at this milestone
- Snagging: the minor defects that can remain outstanding at the date
- Extension of time (EOT): what moves the completion date without penalty
Record it in FieldHive
Agree and evidence a completion date with a dual-signed job sign-off using the Certificate of Completion Generator. It is a record of agreement between you and your customer, not a regulated or contractual certificate.
Certificate of Completion Generator→
