What Does Practical Completion Mean in Construction?

The sites quiet for the first time in months.
Tools packed away. Snag lists nearly done. The end is in sight.

But before anyone celebrates, theres one final hurdle to clear and its often the most misunderstood step of all: Practical Completion.

For something that decides when a project is officially finished, Practical Completion is surprisingly vague.
Ask ten different people what it means, and youll get ten different answers.
And if you get it wrong, it can cost you thousands in time, money, and legal headaches.

So, what exactly is Practical Completion, and how do you get it right?

What Is Practical Completion Really?

Youd think thered be a clear definition for such an important milestone.
But under most JCT contracts, one of the most widely used in UK construction, there isnt.

All it says is that the works are complete, except for minor defects which do not prevent the building from being used for its intended purpose.

Sounds simple but what counts as minor? And who decides?

Thats where things get messy.
Because Practical Completion isnt a science. Its a judgement call. And the person making that call is the contract administratoroften the architect, employers agent, or sometimes even the employer themselves.

The Grey Zone of Minor Defects

Heres where most of the arguments begin.

Some defects clearly qualify as minor:

A scuffed wall? Probably fine.
Loose door handles? Manageable.

But others cross the line:

Missing handrails? Definitely not.
Un-commissioned fire alarms? No chance.

The tricky part is that theres no universal rulebook. Whats minor on one project might be major on another.

Thats why the contract administrators professional judgement is so crucial. They decide when the building is usable, safe, and ready even if a few minor snags remain.

Why Practical Completion Matters So Much

Its not just a ceremonial were donemoment.
Certifying Practical Completion triggers a chain of major legal and financial events:

1. Liquidated damages stop.
No more daily penalties for the contractor running behind schedule.
2. Risk and responsibility shift.
Once certified, the client takes on insurance, damage, and maintenance obligations.
3. Retention is released.
Usually, half of the retained money is paid to the contractor.
4. The Defects Liability Period begins.
Typically lasting 612 months, this is when remaining defects must be fixed but the building can already be used.

Get it right, and the project closes smoothly.
Get it wrong, and disputes start flying.

Where Projects Go Wrong

Because Practical Completion is open to interpretation, it often becomes a battleground.

Contractors push for early certification to stop damages and trigger payment.
Employers or administrators delay certification to ensure the work is truly finished.

Move too fast, and you might accept incomplete work.
Wait too long, and you could unfairly penalise a contractor.

Its a tightrope walk that demands clarity, communication, and careful record keeping.

How to Handle Practical Completion the Right Way

At Harrison Clarke, we advise clients and contractors alike to make Practical Completion a defined, documented process not a last-minute argument.

Heres how to do it right:

1. Set Expectations Early

Before signing the contract, agree on what Practical Completion will look like.
Define clear benchmarks. Document them. Make sure everyone contractor, client, and contract administrator shares the same picture of done.

2. Start Snagging Early

Dont leave the snagging list until the handover day.
Keep a rolling list during construction so issues are logged, categorised, and resolved progressively.
It avoids panic at the end and shows youre managing quality throughout.

3. Focus on Usability, Not Perfection

Buildings are like people never flawless.
The real question is: can it be used safely and effectively?
If yes, then youre probably close to completion.

4. Get Advice Before Certifying

If theres uncertainty, pause.
Certifying too early can expose you to risk, especially if key safety or regulatory items arent finished.
Speak to a professional before signing anything off the cost of good advice is always less than the cost of a dispute.

The Trifling DefectsTest A Landmark Case

A 2019 Court of Appeal case Mears Ltd v Costplan Services (South East) Ltdclarified one of the biggest questions around Practical Completion: how much imperfection is acceptable?

In that case, 56 student flats were built about 3% smaller than planned. Mears argued that this was a breach of contract and refused certification.

But the court disagreed.
They ruled that a trifling defecteven one that technically breaches the contract doesnt stop Practical Completion.

The logic?
If a defect is small enough not to matter in the real world, it shouldnt delay certification.

That decision reshaped how administrators assess Practical Completion.
It doesnt mean ignoring defects they still need to be recorded and rectified during the Defects Liability Period but it means being reasonable and practical.

Avoiding Disputes and Delays

Most Practical Completion arguments come from poor communication, not bad workmanship.

To prevent disputes:

Define completion standards before work begins.
Keep inspection records and photo evidence.
Update snagging lists regularly.
Confirm agreements in writing after site meetings.

Clarity is your best protection especially when payments, warranties, and deadlines all depend on one persons judgement.

For another real-world example of project risk and prevention, see our article on Why Get Professional Advice Before Starting Building Work.

How Professionals Manage It

On projects managed by Harrison Clarke, we make Practical Completion an objective, not an argument.

We:

Define what success looks like before works start
Distinguish clearly between major and minor defects
Hold open snagging sessions near the end of the build
Always ask: Is the building ready to be used safely and effectively?

If the answers yes and every remaining issue is recorded and agreed thats Practical Completion done properly.

The Bottom Line

Practical Completion isnt about perfection.
Its about readiness the point where a building can safely serve its purpose, even if a few finishing touches remain.

But its also not something to rush. Once its certified, the clock starts ticking on liability, payment, and risk. Get it wrong, and theres no easy rewind.

Whether youre a client, contractor, or project manager, treat Practical Completion with care and clarity. Its not just a signature its the line between building and owning, between liability and handover.

And if youre unsure whats minor, major, or trifling, speak to a professional first. At Harrison Clarke Chartered Building Surveyors, we help clients navigate this crucial stage safely, fairly, and confidently. If you need help with Practical Completion, you can contact our friendly team on 02381 550051.

For more expert advice on surveying and property matters, check out our range of informative videos on our website or YouTube channel. Harrison Clarke Chartered Surveyors is here to guide you every step of the way!

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Harrison Clarke Team - Dave

About the author

David Wallbridge, BSc (Hons) Grad Dip MFPWS MRICS

Associate Director

David started his career in 2007 working his sandwich placement at Rund Partnership Limited while completing his post graduate course in Building Surveying. David continued his career with Rund as a building surveyor, specialising in project management, focusing on delivering social housing. Becoming chartered in 2015, David opened his own building surveying practice and became a director of Talisman Homes, his family run business, where he applied valuable management and technical skills to private residential property development. 

After running his own company for 7 years where he served a variety of different clients, David made the decision to move back into more traditional employment, spending a year with large national multi-disciplinary practice Ridge and Partners LLP, before starting at Harrison Clarke in 2023