Practical Completion

Practical completion — PC — is the certified state in which the works are complete, free from patent defects other than minor items, and fit for occupation and use, triggering half the retention release and starting the defects liability period.

Where it sits: No statute defines it; the standard forms certify it (JCT 2016 cl. 2.30) and the courts describe rather than define it. The certifier\'s honest judgment governs.

Everyone knows what it means until it is argued. The working tests: can the employer take possession and use the works for their intended purpose, and is there anything left that is not de minimis? Latent defects do not prevent PC — the building does not know its own future — but a building that cannot be occupied in substance is not practically complete however the certificates are worded.

The money consequences concentrate attention: PC releases the first half of retention, ends liquidated damages (there is nothing left to delay), moves insurances, and starts the clock on rectification period. It is a commercial event wearing a certificate.

Related: retention · snagging · liquidated damages · final account