Practical completion - Revision history

Designing Buildings at 11:15, 10 October 2022

2022-10-10T11:15:26Z

← Older revision		Revision as of 11:15, 10 October 2022
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	= What is practical completion =		= What is practical completion =

−	The RIBA Plan of Work ~~2013 suggests that~~: 'Practical Completion is a contractual ~~term used in~~ the Building Contract to ~~signify~~ the ~~date on which a project is handed over to~~ the ~~client. The date triggers a number~~ of ~~contractual mechanisms~~.'	+	The RIBA Plan of Work 2020, defines practical completion as: 'The point in the process when the construction work is certified as practically complete under the Building Contract. A Practical Completion certificate may be used as a contractual document that allows the client to take possession of and to use a building. It requires the Building Contract administrator to confirm that the building has been completed in accordance with the Building Contract, including the issue of any information for Asset Management or Facilities Management as well as the Building Manual and any Verified Construction Information. It may also be necessary to consult with Project Stakeholders to confirm that the building meets with the relevant standards and is suitable for occupation.'

−	Practical completion is referred to as 'substantial completion' on some forms of contract, particularly in the United States.	+	Practical completion is referred to as 'substantial completion' on some forms of contract, particularly in the United States. Practical completion is not a term recognised in some contracts such as PPC 2000 and other partnering contracts which simply refer to 'completion'.

	= What happens at practical completion =		= What happens at practical completion =
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	If the contract administrator is put under pressure to certify practical completion even though the works are not complete, they might consider informing the client in writing of the potential problems of doing so, obtaining written consent from the client to certify practical completion and obtaining agreement from the contractor that they will complete the works and rectify any defects. If the contract administrator is not confident about the potential problems, they may advise the client to seek legal advice.		If the contract administrator is put under pressure to certify practical completion even though the works are not complete, they might consider informing the client in writing of the potential problems of doing so, obtaining written consent from the client to certify practical completion and obtaining agreement from the contractor that they will complete the works and rectify any defects. If the contract administrator is not confident about the potential problems, they may advise the client to seek legal advice.
−
−	Practical completion is not a term recognised in some recently developed contracts such as PPC 2000 and other partnering contracts which simply refer to 'completion'. This can put the contract administrator in a difficult position as to when the project becomes 'useable' by the client.

	If practical completion is not certified by the most recently agreed completion date, then the contractor may be liable to pay liquidated and ascertained damages to the client. These are pre-determined damages set at the time that the contract is entered into, based on a calculation of the actual loss that the client is likely to incur if the contractor fails to meet the completion date. Some contracts require that a certificate of non-completion is issued as a pre-requisite to deducting liquidated and ascertained damages.		If practical completion is not certified by the most recently agreed completion date, then the contractor may be liable to pay liquidated and ascertained damages to the client. These are pre-determined damages set at the time that the contract is entered into, based on a calculation of the actual loss that the client is likely to incur if the contractor fails to meet the completion date. Some contracts require that a certificate of non-completion is issued as a pre-requisite to deducting liquidated and ascertained damages.

Designing Buildings at 11:08, 10 October 2022

2022-10-10T11:08:28Z

← Older revision		Revision as of 11:08, 10 October 2022
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	* Ending the contractor's liability for liquidated damages (damages that become payable to the client in the event that there is a breach of contract by the contractor - generally by failing to complete the works by the completion date).		* Ending the contractor's liability for liquidated damages (damages that become payable to the client in the event that there is a breach of contract by the contractor - generally by failing to complete the works by the completion date).
	* Signifying the beginning of the defects liability period.		* Signifying the beginning of the defects liability period.
		+
		+	Once the certificate of practical completion has been issued, the client takes possession of the works for occupation.
		+
		+	On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. Once all trade contracts (or all trade contracts for a particular section of the works) have been issued, the construction manager issues a certificate or project completion (or sectional completion). The same is true on management contracts, where each works contract must be certified individually.

	= What is needed for practical completion =		= What is needed for practical completion =
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	* A construction stage report.		* A construction stage report.

−	~~Once the certificate of~~ practical completion ~~has been issued, the client takes possession of the works for occupation.~~	+	= When can practical completion be certified =

	There is no absolute definition of practical completion and case law is very complex. There is some debate about when practical completion can be certified and whether it can be certified where there are very minor (de minimis) items 'not affecting beneficial occupancy' that remain incomplete.		There is no absolute definition of practical completion and case law is very complex. There is some debate about when practical completion can be certified and whether it can be certified where there are very minor (de minimis) items 'not affecting beneficial occupancy' that remain incomplete.
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	If the contract administrator is put under pressure to certify practical completion even though the works are not complete, they might consider informing the client in writing of the potential problems of doing so, obtaining written consent from the client to certify practical completion and obtaining agreement from the contractor that they will complete the works and rectify any defects. If the contract administrator is not confident about the potential problems, they may advise the client to seek legal advice.		If the contract administrator is put under pressure to certify practical completion even though the works are not complete, they might consider informing the client in writing of the potential problems of doing so, obtaining written consent from the client to certify practical completion and obtaining agreement from the contractor that they will complete the works and rectify any defects. If the contract administrator is not confident about the potential problems, they may advise the client to seek legal advice.
−
−	On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. Once all trade contracts (or all trade contracts for a particular section of the works) have been issued, the construction manager issues a certificate or project completion (or sectional completion). The same is true on management contracts, where each works contract must be certified individually.

	Practical completion is not a term recognised in some recently developed contracts such as PPC 2000 and other partnering contracts which simply refer to 'completion'. This can put the contract administrator in a difficult position as to when the project becomes 'useable' by the client.		Practical completion is not a term recognised in some recently developed contracts such as PPC 2000 and other partnering contracts which simply refer to 'completion'. This can put the contract administrator in a difficult position as to when the project becomes 'useable' by the client.
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	NB: Sectional completion refers to a provision within construction contracts allowing different completion dates for different sections of the works. This is common on large projects that are completed in sections, allowing the client to take possession of the completed parts whilst construction continues on others. Sectional completion differs from partial possession in that it is pre-planned and defined in the contract documents.		NB: Sectional completion refers to a provision within construction contracts allowing different completion dates for different sections of the works. This is common on large projects that are completed in sections, allowing the client to take possession of the completed parts whilst construction continues on others. Sectional completion differs from partial possession in that it is pre-planned and defined in the contract documents.

−	= Case law =	+	= Case law relating to practical completion =

	The case of Mears Limited v Costplan Services (South East) Limited, Plymouth (Notte Street) Limited, J.R. Pickstock Limited [2019] EWCA Civ 502 has provided additional guidance about the meaning of practical completion, based on the interpretation by the court that the contract as it stood would lead to a “commercially absurd result” in which practical completion could not be certified.		The case of Mears Limited v Costplan Services (South East) Limited, Plymouth (Notte Street) Limited, J.R. Pickstock Limited [2019] EWCA Civ 502 has provided additional guidance about the meaning of practical completion, based on the interpretation by the court that the contract as it stood would lead to a “commercially absurd result” in which practical completion could not be certified.
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	* Migration strategy.		* Migration strategy.
	* Partial possession.		* Partial possession.
−	* Phased construction works.
	* Possession.		* Possession.
−	* Punch list.
	* Occupation and defects liability period.		* Occupation and defects liability period.
	* Retention.		* Retention.
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	* Substantial completion.		* Substantial completion.
	* Time at large.		* Time at large.
−	* Topping out.
	* Work-to-complete list.		* Work-to-complete list.

	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 09:30, 10 October 2022

2022-10-10T09:30:40Z

← Older revision		Revision as of 09:30, 10 October 2022
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	[[File:Time.jpg\|link=File:Time.jpg]]		[[File:Time.jpg\|link=File:Time.jpg]]

−	= ~~Introduction~~ =	+	= What is practical completion =

	The RIBA Plan of Work 2013 suggests that: 'Practical Completion is a contractual term used in the Building Contract to signify the date on which a project is handed over to the client. The date triggers a number of contractual mechanisms.'		The RIBA Plan of Work 2013 suggests that: 'Practical Completion is a contractual term used in the Building Contract to signify the date on which a project is handed over to the client. The date triggers a number of contractual mechanisms.'

	Practical completion is referred to as 'substantial completion' on some forms of contract, particularly in the United States.		Practical completion is referred to as 'substantial completion' on some forms of contract, particularly in the United States.
		+
		+	= What happens at practical completion =

	The contract administrator certifies practical completion when all the works described in the contract have been carried out. Certifying practical completion has the effect of:		The contract administrator certifies practical completion when all the works described in the contract have been carried out. Certifying practical completion has the effect of:
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	* Ending the contractor's liability for liquidated damages (damages that become payable to the client in the event that there is a breach of contract by the contractor - generally by failing to complete the works by the completion date).		* Ending the contractor's liability for liquidated damages (damages that become payable to the client in the event that there is a breach of contract by the contractor - generally by failing to complete the works by the completion date).
	* Signifying the beginning of the defects liability period.		* Signifying the beginning of the defects liability period.
		+
		+	= What is needed for practical completion =

	Documentation that should be issued to the client on certification of practical completion might include:		Documentation that should be issued to the client on certification of practical completion might include:

Designing Buildings at 09:03, 14 March 2022

2022-03-14T09:03:10Z

← Older revision		Revision as of 09:03, 14 March 2022
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	Ref [https://www.bailii.org/ew/cases/EWCA/Civ/2019/502.html https://www.bailii.org/ew/cases/EWCA/Civ/2019/502.html]		Ref [https://www.bailii.org/ew/cases/EWCA/Civ/2019/502.html https://www.bailii.org/ew/cases/EWCA/Civ/2019/502.html]

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Beneficial occupation.		* Beneficial occupation.

Editor: Reverted edits by 212.219.50.20 (talk) to last revision by Designing Buildings

2021-11-18T14:44:36Z

Reverted edits by 212.219.50.20 (talk) to last revision by Designing Buildings

← Older revision		Revision as of 14:44, 18 November 2021
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	* A draft building owner's manual.		* A draft building owner's manual.
−	* A building user's guide. ~~willy~~	+	* A building user's guide.
	* The health and safety file.		* The health and safety file.
	* The building log book.		* The building log book.

212.219.50.20 at 14:42, 18 November 2021

2021-11-18T14:42:43Z

← Older revision		Revision as of 14:42, 18 November 2021
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	* A draft building owner's manual.		* A draft building owner's manual.
−	* A building user's guide.	+	* A building user's guide. willy
	* The health and safety file.		* The health and safety file.
	* The building log book.		* The building log book.

Designing Buildings at 06:01, 27 August 2020

2020-08-27T06:01:11Z

← Older revision		Revision as of 06:01, 27 August 2020
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	* Work-to-complete list.		* Work-to-complete list.

−	[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 09:10, 8 March 2020

2020-03-08T09:10:02Z

← Older revision		Revision as of 09:10, 8 March 2020
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	* Completion date.		* Completion date.
	* Defects liability period.		* Defects liability period.
		+	* Defects list.
	* Difference between practical completion and partial possession.		* Difference between practical completion and partial possession.
	* Early use.		* Early use.

Designing Buildings at 17:11, 6 December 2019

2019-12-06T17:11:49Z

← Older revision		Revision as of 17:11, 6 December 2019
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−	[[File:Time.jpg]]	+	[[File:Time.jpg\|link=File:Time.jpg]]

	= Introduction =		= Introduction =

−	The ~~contract administrator certifies practical completion when all the works described in the contract have been carried out.~~ Practical ~~completion~~ is ~~referred~~ to ~~as 'substantial completion'~~ on ~~some forms of contract, particularly in~~ the ~~United States~~.	+	The RIBA Plan of Work 2013 suggests that: 'Practical Completion is a contractual term used in the Building Contract to signify the date on which a project is handed over to the client. The date triggers a number of contractual mechanisms.'

−	Certifying practical completion has the effect of:	+	Practical completion is referred to as 'substantial completion' on some forms of contract, particularly in the United States.
		+
		+	The contract administrator certifies practical completion when all the works described in the contract have been carried out. Certifying practical completion has the effect of:

	* Releasing half of the retention (an amount retained from payments due to the contractor to ensure they complete the works).		* Releasing half of the retention (an amount retained from payments due to the contractor to ensure they complete the works).

Designing Buildings at 07:56, 10 October 2019

2019-10-10T07:56:38Z

← Older revision		Revision as of 07:56, 10 October 2019
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		+	[[File:Time.jpg]]
		+
	= Introduction =		= Introduction =

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	= Case law =		= Case law =

−	~~in the~~ case of Mears Limited v Costplan Services (South East) Limited, Plymouth (Notte Street) Limited, J.R. Pickstock Limited [2019] EWCA Civ 502 provided additional guidance about the meaning of practical completion, based on the interpretation by the court that the contract as it stood would lead to a “commercially absurd result” in which practical completion could not be certified.	+	The case of Mears Limited v Costplan Services (South East) Limited, Plymouth (Notte Street) Limited, J.R. Pickstock Limited [2019] EWCA Civ 502 has provided additional guidance about the meaning of practical completion, based on the interpretation by the court that the contract as it stood would lead to a “commercially absurd result” in which practical completion could not be certified.

	LJ Coulson said it would be “commercially unworkable if every departure from the contract drawings, regardless of the reason for, and the nature and extent of, the non-compliance, had to be regarded as a breach of contract”.		LJ Coulson said it would be “commercially unworkable if every departure from the contract drawings, regardless of the reason for, and the nature and extent of, the non-compliance, had to be regarded as a breach of contract”.