Completion of the works

Practical completion

Most building contracts specify a time when the works are to be completed. The expression 'practical completion' is generally understood to mean that the contractor has completed the works in accordance with the contract and can hand them over to the employer. See Practice Note: What is practical completion?

Definitions of practical completion range from 'nearly but not quite complete' to 'complete for practical purposes' but there is no formal definition accepted by the industry as a whole. Most of the standard form contracts do not define practical completion. If the parties would prefer to include an express definition, see also Precedent: Practical completion definition.

Once the contractor is satisfied that the works have reached practical completion, the employer's representative and the contractor will inspect the project. If it is agreed that practical completion has been achieved, a practical completion certificate/statement will be issued. This can happen despite minor defects (not affecting the employer's ability to use the works) remaining in the works which the contractor will rectify. See Precedent: Snagging clause.

Where the building contract splits the works into sections there

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Construction News

Arbitration or not arbitration? (Bugsby Property LLC v Omni Bridgeway (Fund 5) Cayman Invt Ltd)

Arbitration analysis: An agreement varying a litigation funding agreement contained a clause providing that any party shall be entitled to resolve a dispute by referring it to a KC who would be instructed to provide a final and binding opinion. The court held that the claimant did not have a good arguable case that the clause was an arbitration agreement, and the court could not, therefore, appoint an arbitrator pursuant to section 18 of the Arbitration Act 1996. Written by Jennifer Haywood, barrister, arbitrator and mediator at Serle Court.

CLC announces restructure of ICSG

The Construction Leadership Council (CLC) has announced a restructure of the Industry Competence Steering Group (ICSG), aimed at improving competence and safety standards across the built environment sector. This strategic shift involves the ICSG transitioning into a formal working group under the Building Safety Regulator's Industry Competence Committee. The new structure comprises sector-led groups, key topic groups, and working groups, with contributions from over 60 professional and trade bodies and 1500 individuals.

EA launches consultation on new standard rules for using IBAA in construction

The Environment Agency (EA) has launched a consultation, seeking views on proposed new standard rules for using unbound incinerator bottom ash aggregate (IBAA) in construction as a deposit for recovery operation. The consultation aims to establish a long-term regulatory framework to replace the EA's current regulatory position statement for the use of IBAA, which expires in January 2025. The proposed rules would apply only to IBAA produced from the incineration of municipal solid waste. The consultation seeks stakeholder feedback to determine whether the proposed rules effectively mitigate environmental and human health risks associated with this activity. The consultation closes on 3 March 2025.

RICS responds to MHCLG and DESNZ joint consultation on EPB regime reforms

The Royal Institution of Chartered Surveyors (RICS) has expressed support for the Ministry of Housing, Communities and Local Government (MHCLG)’s and the Department for Energy Security and Net Zero (DESNZ)'s joint consultation on reforms to the Energy Performance of Buildings (EPB) regime in England and Wales, stating that it ‘represents a critical step toward ensuring homes and buildings contribute meaningfully to the UK’s net-zero’. The proposed changes focus on modernising Energy Performance Certificate (EPC) methodologies, improving compliance mechanisms, and streamlining tools for improved accessibility and usability. RICS emphasises the importance of these reforms in supporting the Warm Homes Programme and addressing landlords' concerns about minimum energy efficiency standards in the rental sector.