Practical Completion and Final Completion

Practical and final completion both relate to the concluding stages in the building contract, which are presided over by the Contract Administrator.

A Practical Completion meeting is held between the relevant parties, and a walk-round of every room in the building takes place, during which the CA records all defects. Occupation or use of the building will often follow Practical Completion.

Issue of the Practical Completion Certificate (along with a list of minor items to be immediately rectified) triggers the release of half of the agreed retention. Retention is an agreed percentage of the contract sum withheld from each monthly payment to the contractor.

The issue of the Practical Completion Certificate also marks the start of the defects liability period, or rectification period. This typically lasts between 3 and 6 months but may be longer depending on the development and what has been agreed.

The CA has 14 days from the end of the rectification period to provide the contractor with a list of defects, including any outstanding items from Practical Completion and any that have arisen during the rectification period. Once the contractor confirms that all defects have been rectified, a final inspection is carried out.

When all defects have been addressed, a Certificate of Making Good Defects can be signed and issued.

A Final Completion Certificate can then be issued, releasing the remaining retention monies.