A critical contractual milestone marking the point where construction is substantially finished and the client can take possession of the building. Reaching this stage triggers the handover of the site, shifts insurance liability to the owner, and releases a portion of the retained funds to the contractor. It also starts the defects liability period, during which the builder must fix any remaining minor flaws.
Heard on the job
We hit practical completion on Tuesday, so the client is moving their furniture in this weekend while we finish the punch list.
Insider tip
Do not confuse this with final completion, which only happens after all defects are rectified and final accounts are settled.
Also heard as
- substantial completion