The works can be finished and the job still not handed over. On a fit-out that's often down to documents: the O&M manual isn't accepted, a test certificate is missing, or the as-built drawings haven't been marked up.
This article covers what practical completion means, why the paperwork matters so much at that point, and how to collect it so it isn't the thing holding you up.
This is general information, not legal or contract advice. Your contract decides what applies to your job.
What is practical completion?
Practical completion, usually shortened to PC, is the point at which the works are treated as finished and the building or space goes back to the client.
Most standard building contracts, JCT included, don't define it. Where it isn't defined, the courts have given some guidance. In Mears v Costplan (2018), the judge accepted that latent defects don't prevent practical completion, but that defects you can see should prevent it from being certified, and that all the construction work has to be complete apart from very minor items. Some contracts are amended to give their own definition, for example a stage at which the property can be occupied or used.
In practice, what counts as practical completion on your job comes down to your contract and the person certifying it.
Why practical completion matters
A lot changes on the day practical completion is certified:
- the client takes possession, and with it responsibility for insurance, security and maintenance
- half the retention is normally released
- your exposure to liquidated damages stops
- the rectification period, sometimes called the defects liability period, starts
So a week's delay to PC costs you in more than one place.
Where documents come in
Some contracts make handover documents, such as as-built drawings and O&M manuals, a condition of practical completion. Others leave it to the certifier's judgement. Either way, clients do hold back sign-off when the manuals are incomplete or not fit for purpose.
That's why the time to find out which you have is the start of the job, not the last fortnight. Read the preliminaries and note what has to be handed over and in what format.
The documents usually asked for
On a commercial fit-out, expect to be asked for most of these:
- O&M manual
- Health and safety file
- As-built drawings
- Test and commissioning certificates
- Fire safety information
- Warranties and guarantees
- Building control completion certificate, where the work needed approval
The RIBA Plan of Work puts the building manual, the health and safety file and the fire safety information together at the handover stage.
If you're unsure how the O&M manual and the health and safety file differ, see O&M manual or health and safety file?. For fire safety information, see Fire safety information at handover.
Collect it as the job goes
The manual needs the most input at the end of the job. That's when your site team is busiest and your subcontractors have already left. The answer is to collect as you go:
- When you place an order, ask the supplier for data sheets, warranties and maintenance instructions.
- When it's installed, mark up the drawings with anything that changed.
- When it's tested, get the certificate on the day of the test.
- Before PC, issue a draft so comments come back while you're still on site.
- At PC, issue the final version and ask for acceptance in writing.
Step four is the one most often skipped, and it's the one that saves the most time. A draft that comes back with ten comments two weeks before PC is a small job. The same ten comments after the site team has demobilised is a big one.
Why it slips
Two things come up again and again. The time it takes to gather everything is underestimated, and the job is left too late. Contractors know that doing the manual themselves saves money, but the work involved catches them out, and by then there's nobody spare to do it.
What goes in an O&M manual? has the full checklist, which makes it easier to see the size of the job early.
Frequently asked questions
What does practical completion mean?
It's the point at which the works are treated as finished and handed back to the client. Most standard contracts don't define it, so it depends on your contract and the person certifying it.
What happens at practical completion?
The client takes possession, half the retention is normally released, liquidated damages stop and the rectification period starts.
What is the difference between practical completion and final completion?
Practical completion is when the works are handed over. The final certificate comes later, after the rectification period has ended and any defects have been made good.
What you get if you hand it over
We compile a Digital O&M & H&S File, from information you supply us, with your Company branding. You will receive a complete Digital O&M Package that complies with the BSA Golden Thread, in accordance with ISO9001, Section 7.5.2.
Request a call or email david@habgoodmanualsolutions.co.uk.
Related service: O&M manuals
