Practical Completion

Practical completion is the stage in a renovation where the work is substantially finished and the property is fit for its intended use — even if a few minor items remain on the snagging list. It’s an important contractual milestone because it triggers several things: part of the retention is released, the defects liability period begins, and the contractor’s day-to-day responsibility for the site ends.

What “substantially finished” means

Practical completion doesn’t mean every last detail is perfect. It means:

• All the major work described in the scope of work is done
• The space is safe and usable for its intended purpose
• Any remaining items are genuinely minor (a touch-up here, a missing handle there)
• Building regulations inspections have been passed (or are scheduled)

It does not mean the project is 100% complete — that comes later, after snagging items are resolved.

Why it matters

Practical completion is more than just a feel-good milestone. It has real contractual consequences:

• Retention release — typically half of the retained funds become payable
• Defects liability period starts — the clock begins on the contractor’s obligation to fix defects
• Insurance responsibility shifts — you become responsible for insuring the property again
• Possession returns to you — the contractor no longer has control of the site

How to handle practical completion

1. Walk the site together with your general contractor and create a detailed snagging list
2. Agree in writing that practical completion has been reached
3. Record the date — it’s the starting point for the defects liability period
4. Release the agreed retention amount promptly
5. Set a timeline for the contractor to address all snagging items

Don’t rush to declare practical completion if significant work remains. Equally, don’t withhold it unreasonably over trivial cosmetic issues — that’s what the snagging list is for.