Practical Completion

Practical Completion, referred to as 'substantial completion' generally means when there are no....

.....outstanding building defects.

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Practical completion is important because the contractor no longer has exclusive.....

.....possession of the site * the contractor’s obligation to ensure the works comes to an end * the contractor’s liability for liquidated damages for delay ends * time starts running in respect of the rectification period

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Sectional Completion is if an employer wants to use part/parts of a site before....

....practical completion to occupy a part of the site early or to sell off a part of it, then often the contract is drafted to provide for sectional completion

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One of the main reasons why disputes about practical completion arise is that the term....

....does not have a specific legal meaning.Practical completion cannot be achieved when there are patent defects in the works, unless those defects are very minor.

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Failure to complete the works by the specified completion date means the contractor is in breach of contract, which could result in the deduction of LADs, or a claim from....

..... the employer for general (unliquidated) damages for delay. In addition, practical completion triggers the passing of major risks from the contractor to the employer.

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Once practical completion is achieved… * the employer is able to take possession of the works; * the employer’s right to instruct.....

.....variations to the works will cease; * claims for delay on the part of the employer and for loss and expense/extension of time on the part of the contractor cease to accrue; * the first part of the retention can be released to the contractor;

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JCT Contracts can be amended to specify PC, however it'll have to be left to the discretion of the....

....employer or his representative to determine when practical completion has occurred.

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NEC3 contracts provide more clarity by using the term “Completion”, which is defined as occurring when the contractor has done all the work the works information in the contract requires him to do by the completion date, and....

....corrected any defects which would prevent the employer from using the works. It is the project manager who must decide when the definition of “Completion” has been satisfied by the contractor.

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'PC' can be detrimental to the contractor as failure to comply with one or more conditions, no matter how minor, can allow the employer to legitimately refuse to...

...certify practical completion. It is worth bearing in mind that in this economic climate, employers may be keen to delay practical completion for as long as possible if they have no tenant or purchaser lined up for the completed development.

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A contract which contains conditions precedent to practical completion should be reviewed carefully by the contractor, who must ensure that....

....he is able to comply with all the specified conditions.

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practical completion cannot be certified because the contractor has left administrative matters such as the signing of collateral warranties and the preparation of operation....

....and maintenance manuals until the very end of the project. This is a risk which can easily be avoided by taking a pro-active approach.

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Practical Completion

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Other cards in this set

Card 2

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Card 3

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Card 4

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