Completion date in construction contracts
Most construction contracts set a date by which the works described in the contract must be completed (the completion date or contract completion date). This is not the date by which all obligations under the contract have to be discharged, but the date by which 'practical completion' must be certified. That is, the date by which the works have been completed and the client can take possession of the site, albeit there may be very minor items outstanding that do not affect beneficial occupancy by the client.
Certifying practical completion (referred to as 'substantial completion' on some forms of contract) returns possession of the site to the client, releases half of the retention, ends the contractor's liability for liquidated damages and signifies the beginning of the defects liability period. The defects liability period (sometimes called the rectification period) typically lasts six to twelve months during which the client may occupy the premises and the contractor must rectify any defects that are identified.
The completion date may be altered during the course of the contract, for example if the date the contractor takes possession of the site to begin construction is delayed, or if an extension of time is granted due to delays to the works that are not the contractor’s fault. Practical completion therefore must be certified by the most recently agreed completion date.
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.
Where the contract requires sectional completion of the works, then separate dates for completion and separate rates of liquidated and ascertained damages should be set for each section.
NB: There can be a cascade effect, where delays in one section cause delays in another. The contractor may then be liable to pay liquidated and ascertained damages for each section.
On construction management contracts, a separate completion date must be set for each trade contract. Once all trade contracts have been certified as practically complete, the construction manager issues a certificate or project completion. The same is true on management contracts, where each works contract must be dealt with individually.
Documentation that should be issued to the client on certification of practical completion may include:
- A draft building owner's manual.
- A building user's guide.
- The health and safety file.
- The building log book.
- A construction stage report.
Notes:
- If a contract does not specify a completion date, then the works should be completed within a reasonable time, although it is unlikely that such an ambiguous arrangement would allow the client to deduct liquidated and ascertained damages.
- Construction contracts will generally include a provision requiring that the contractor proceeds ‘regularly and diligently’ irrespective of whether it is apparent that the completion date will be achieved.
- Practical completion is not a term recognised in some recently developed contacts such as PPC 2000 and other partnering contracts which simply refer to 'completion'. See Practical completion for more information.
- The 'contractor’s planned completion date' is the date shown on the contractor’s programme as being the date when the contractor plans to complete the works under the contract. This may be different to the contract completion date.
- The 'date for completion' is the date by which the contractor is expected to complete the works, which may be earlier or later than the contract completion date.
Ref Society of Construction Law Delay and Disruption Protocol, 2nd edition, February 2017, published by the Society of Construction Law (UK). https://www.scl.org.uk/resources/delay-disruption-protocol
See also: Failure to complete construction works.
[edit] Related articles on Designing Buildings
- Building completion.
- Certificate of non completion.
- Completion.
- Concurrent delay.
- Contractor’s planned completion date.
- Date for completion.
- Defects liability period.
- Extension of time.
- Failure to complete construction works.
- Final account.
- Final certificate.
- Handover to client.
- Liquidated and ascertained damages.
- Loss and expense.
- Migration strategy.
- Octoesse LLP v Trak Special Projects Ltd
- Practical completion.
- Progress of construction works.
- Sectional completion.
- Time at large.
- Topping out.
Featured articles and news
BSRIA Sentinel Clerk of Works Training Case Study
Strengthening expertise to enhance service delivery with integrated cutting-edge industry knowledge.
Impact report from the Supply Chain Sustainability School
Free sustainability skills, training and support delivered to thousands of UK companies to help cut carbon.
The Building Safety Forum at the Installershow 2025
With speakers confirmed for 24 June as part of Building Safety Week.
The UK’s largest air pollution campaign.
Future Homes Standard, now includes solar, but what else?
Will the new standard, due to in the Autumn, go far enough in terms of performance ?
BSRIA Briefing: Cleaner Air, Better tomorrow
A look back at issues relating to inside and outside air quality, discussed during the BSRIA briefing in 2023.
Restoring Abbotsford's hothouse
Bringing the writer Walter Scott's garden to life.
Reflections on the spending review with CIAT.
Retired firefighter cycles world to raise Grenfell funds
Leaving on 14 June 2025 Stephen will raise money for youth and schools through the Grenfell Foundation.
Key points for construction at a glance with industry reactions.
Functionality, visibility and sustainability
The simpler approach to specification.
Architects, architecture, buildings, and inspiration in film
The close ties between makers and the movies, with our long list of suggested viewing.
SELECT three-point plan for action issued to MSPs
Call for Scottish regulation, green skills and recognition of electrotechnical industry as part of a manifesto for Scottish Parliamentary elections.
UCEM becomes the University of the Built Environment
Major milestone in its 106-year history, follows recent merger with London School of Architecture (LSE).
Professional practical experience for Architects in training
The long process to transform the nature of education and professional practical experience in the Architecture profession following recent reports.
A people-first approach to retrofit
Moving away from the destructive paradigm of fabric-first.
New guide for clients launched at Houses of Parliament
'There has never been a more important time for clients to step up and ...ask the right questions'
The impact of recycled slate tiles
Innovation across the decades.
EPC changes for existing buildings
Changes and their context as the new RdSAP methodology comes into use from 15 June.
Comments
To start a discussion about this article, click 'Add a comment' above and add your thoughts to this discussion page.