Practical Completion

Practical completion triggers several contractual consequences: the defects liability period begins, retention money release is triggered (typically 50% at PC, remainder at end of DLP), liquidated damages for delay cease, and insurance responsibility typically transfers to the owner. The certifier (architect or contract administrator) issues the certificate of practical completion. Minor outstanding items are recorded on a defects list (snagging list) for completion within the DLP.

Practical completion is the most significant milestone in a construction contract. It determines when the building can be occupied, when financial obligations shift, and when the defects liability period starts. Premature certification risks occupying an incomplete building; delayed certification unfairly penalises the contractor.