Difference between practical completion and partial possession
![]() |
The extent to which building works have been completed and whether a client can occupy a building or not is an issue that often arises during a project. There can be pressure to occupy a building, even if the works are not complete, and this can lead to disputes if the differences in the options available are not properly understood.
[edit] Practical completion
The contract administrator certifies practical completion when all the works described in the contract have been carried out. This is when, leaving aside minor items and/or snagging, the works are considered to be complete.
Once the certificate of practical completion has been issued, the client takes possession of the works for occupation. At this point the contractor no longer has exclusive possession of the site, and their obligation to insure the works and their liability for liquidated damages for delay comes to an end. Depending on the type of contract, at this point the contractor usually becomes entitled to half of the retention monies.
Practical completion signifies the beginning of the defects liability period, during which the contractor must make good any defects that become apparent. It is important to note that the defects liability period is not a chance to correct problems apparent at practical completion, it is the period during which the contractor may be recalled to rectify defects which appear following practical completion. If there are defects apparent before practical completion, then these should be rectified before a certificate of practical completion is issued.
[edit] Partial possession
The client may wish to take possession of part of a building or site, even if works are ongoing. This can be programmed within the original contract documents it the need can be foreseen through a requirement for sectional completion, but in the absence of such a provision many contracts offer the more open-ended option of partial possession.
The effect of partial possession is that:
- Any part for which partial possession is given is deemed to have achieved practical completion.
- Half of the retention for that part must be released.
- The defects liability period begins for that part.
- Liquidated damages reduce proportionally.
- The client is responsible for that part and should insure it.
The contractor is not obliged to allow partial possession (although permission cannot be unreasonably withheld), and may not wish to if, for example, access routes are difficult to achieve, it would disrupt the works, or it would incur additional costs. There could also be additional difficulties if the occupants of the part that has been possessed disrupt the contractor, which could result in a claim for extension of time and/or loss and expense.
[edit] Related articles on Designing Buildings Wiki
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
under JCT D&B 2016, if partial possession is agreed and partial possession certificates are issued for all areas of works individually, does one still need to issue a practical completion certificate at the end of the project?