What is practical completion and why does it matter?
Practical completion is the point where the work is finished apart from minor defects. It matters because it often stops liquidated damages, starts the defects period and triggers the release of retention.
What it means
Practical completion means the works are complete and fit for use, except for minor defects that do not stop use. The contract defines the exact test, and wording differs between contracts.
The superintendent or principal usually certifies it. Some contracts say the certificate is needed. Others use the actual state of the work.
What changes at practical completion
- Liquidated damages for late completion normally stop.
- The defects liability period starts.
- Half of the retention is often released.
- Insurance and site care may pass to the client.
- Time limits for later claims may start to run.
How to protect your position
Request the certificate in writing when you believe the work is ready. Attach a list of what is done and what minor items remain. Keep a record of the date you asked.
Every Australian state and territory has its own security of payment law with its own time limits. For example, Queensland usually requires a payment claim within 6 months of the work or the contract time if shorter. The date of completion can matter.
Related answers
Questions
Can practical completion be reached with defects remaining?
Yes, if they are minor and the contract test is met. The exact test is in your contract.
What if the superintendent will not certify?
Give written notice with your evidence and ask for reasons.
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