Practical Completion marks the end of the Construction Period of a project, when the works are 'finished' and the employer can occupy and/or use them. Practical completion also typically marks the start of the Defects liability period/maintenance period.
As explained below, practical completion is an important stage in a construction project because it has significant commercial, contractual, financial and practical implications for both the employer and the contractor. Whether a construction project has, in fact, achieved practical completion is a frequent source of disagreement and disputes within the construction industry.
Practical completion is also known as ‘substantial Completion’ or simply ‘completion’ in some contracts.
What does 'practical completion' mean?
Many problems that occur on construction projects in relation to practical completion arise out of the difficulty in knowing what the term practical completion means.
It is quite typical for the expression 'practical completion' to be used in building contracts with little or no clarification as to what it is intended to mean, ie what state the contract requires the works to have reached in order for them to be certified
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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Practical completion definition
What does Practical completion mean?
The date at which building works under a contract are complete to such an extent to allow the main purpose of the contract to be commenced
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