Skip to main content
Corporate Due Diligence

Building Handover and Defects Liability

The handover from construction to operation is a critical transition. Understanding what should happen during handover helps ensure that the building is properly documented and free of significant defects.

Good Practice Developer, FM Team Pending

What Building Handover Means

Building handover is the formal process of transferring a completed building (or fit-out) from the contractor/developer to the owner/occupier. It is the point where construction responsibility ends and operational responsibility begins. A poorly managed handover creates years of problems — missing documentation, latent defects, untrained operators, and disputed responsibilities.

Handover Stages

1. Practical Completion

The building is substantially complete and fit for occupation, even if minor defects remain. This triggers:

  • Start of the Defects Liability Period (DLP) — typically 12 months
  • Release of retention (typically 50% of retention held)
  • Transfer of insurance responsibility to the owner
  • Handover of keys and access control

2. Snagging / Defect Inspection

Systematic inspection to identify defects and incomplete works. Categories:

CategoryExampleAction
Category A — SafetyMissing fire stopping, exposed wiring, non-functional exitRectify before occupation
Category B — FunctionalLeaking pipe, HVAC not cooling, lift levelling issueRectify within 14 days
Category C — CosmeticPaint touch-up, scratched glass, damaged tileRectify within 30 days

3. Documentation Handover

The following must be received and verified at handover:

  • As-built drawings — all disciplines (architectural, structural, MEP, fire) reflecting what was actually built
  • O&M manuals — manufacturer documentation for every installed equipment item
  • Test certificates — electrical, fire alarm, sprinkler, HVAC commissioning, lift, waterproofing
  • Warranties — itemised list with start dates, durations, terms, and contact details
  • Spare parts and keys — all special keys, access cards, spare filters, spare sprinkler heads, touch-up paint
  • Health and safety file — hazardous materials register, structural loading limitations, access procedures

4. Training

The contractor must train the building operations team on all installed systems:

  • BMS operation and alarm management
  • Fire alarm panel operation, zone identification, silence/reset procedure
  • Generator operation — start, transfer, refuel, fault clearing
  • HVAC plant operation — chiller start/stop, AHU control, filter access
  • Lift emergency procedures — entrapment release, fireman's switch

Defects Liability Period (DLP)

  • Duration: Typically 12 months from practical completion. May extend to 24 months for major systems.
  • Scope: Contractor must rectify any defect that appears during the DLP at no cost, provided it's not caused by occupant misuse or wear.
  • Process: Log defects as they appear → notify contractor in writing → contractor rectifies within agreed timeline → verify rectification.
  • End of DLP: Final inspection → issue final snag list → contractor rectifies → release remaining retention (typically remaining 50%).

Common Handover Failures in Bangladesh

  • No as-built drawings provided (or design drawings passed off as as-builts)
  • O&M manuals missing or incomplete
  • No commissioning reports — systems handed over without proper testing
  • Training not conducted — operations team doesn't know how to operate systems
  • Fire protection systems not tested or certified
  • Snagging list not tracked — defects remain unresolved for years

References & Sources

  1. BSRIA BG 6 — Soft Landings
  2. RICS — Building Surveys and Handover Practice
  3. ASHRAE Guideline 0 — Commissioning Process
  4. FIDIC Conditions of Contract — Defects Notification Period
  5. BNBC 2020 — Construction Completion Requirements (HBRI, Government of Bangladesh)

Insights & Guidance

  • Handover is where construction responsibility ends and operational responsibility begins — get it right.
  • Snagging must be categorised: safety defects before occupation, functional within 14 days, cosmetic within 30 days.
  • Critical handover documents: as-built drawings, O&M manuals, test certificates, warranties, health and safety file.
  • Defects Liability Period (typically 12 months) is your window to have defects fixed at contractor cost.
  • Training of operations team on all systems is a contractual requirement, not a favour.
  • In Bangladesh, handover documentation is commonly incomplete — insist on it as a condition of practical completion certificate.

A building without proper handover documentation is a building without a maintenance baseline. Without as-built drawings, you don't know what's behind the walls. Without commissioning reports, you don't know if systems were ever properly tested. Without O&M manuals, you can't maintain equipment correctly. Every gap at handover becomes a recurring operational problem.

  • Missing as-builts — maintenance team doesn't know pipe routes, duct locations, or structural details behind finishes.
  • Latent defects — waterproofing fails after DLP expires; no recourse to contractor.
  • Untrained operators — staff don't know how to operate BMS, fire panel, generator; systems are mismanaged or bypassed.
  • Warranty claims lost — no warranty documentation means equipment failures can't be claimed.
  • Snag list abandoned — defects never rectified; become permanent maintenance burden.

  • Practical completion certificate (signed by architect/engineer and contractor)
  • Snagging list with status tracking (open/closed/verified)
  • As-built drawings — all disciplines
  • O&M manuals — all equipment
  • Test and commissioning certificates
  • Warranty register with expiry dates
  • Training records — who was trained, on what, by whom
  • Spare parts inventory

  • Finishes quality — paint, flooring, joinery, ceiling alignment.
  • Door and window operation — smooth opening, proper sealing, hardware functional.
  • MEP systems — all running, no leaks, no unusual noise, proper labelling.
  • Fire systems — alarm panel showing normal, sprinkler heads clear, exit signs lit.
  • Washrooms — all fixtures working, no leaks, adequate water pressure.
  • External — landscaping complete, drainage clear, access roads finished.

  • Has practical completion been formally certified? By whom?
  • Where is the snagging list? How many items remain open?
  • Have as-built drawings been provided for all disciplines?
  • Are O&M manuals complete for all installed equipment?
  • Have all systems been commissioned and tested? Can I see the reports?
  • What training has been provided to the operations team? Is it documented?
  • What is the DLP duration and what does it cover?
  • What spare parts and special tools have been handed over?

  • Handover inspection — independent building surveyor for snagging.
  • Commissioning verification — MEP commissioning specialist to witness/verify system tests.
  • Document review — technical reviewer to verify as-builts match installed work.
  • DLP management — FM consultant to track defects and enforce contractor obligations.
Was this page helpful?
|

Related Articles

Vendor and Contractor Due Diligence for Buildings

How to evaluate, select, and manage building service contractors and vendors, covering prequalification, contract structures, performance monitoring, and compliance requirements.

Service Charge Analysis for Commercial Buildings

How to evaluate, benchmark, and negotiate service charges in commercial leases, covering what should be included, common disputes, and best practice transparency standards.

Space Management and Utilisation: Measuring How Buildings Are Actually Used

How to measure and manage space utilisation in commercial buildings including measurement methods, occupancy sensors, utilisation benchmarks, cost per occupied seat, and how space data drives real estate decisions.

Disclaimer: This article provides educational information and preliminary guidance. It does not constitute professional engineering advice, structural certification, fire-safety approval, legal advice or statutory approval. Building conditions vary by jurisdiction, design, construction and operation. Qualified professionals and relevant authorities should be engaged where required.

Stay informed

Building safety, compliance and operational readiness updates — direct to your inbox.

We respect your privacy. Unsubscribe at any time.