Practical Completion (PC)
PC is the holy grail. It is the point where:
- The works are substantially complete.
- The building is fit for occupation and use.
- Only minor defects exist (which don't prevent use).
- All certificates/warranties are provided.
At PC: The Client takes possession, insurance responsibility shifts to the Client, the Defects Liability Period begins, and the first half of the Retention/Security is released to the Builder.
PC Is a Test of “Fitness for Use”
PC is not “everything is perfect”. It is “the building can be used for its intended purpose”. In practice, arguments usually come down to:
- Commissioning and testing: services must work (HVAC, fire systems, hydraulics, electrical, controls).
- Compliance and approvals: required certifications and inspection sign-offs are complete (or there is a contract-accepted pathway).
- Defects list scope: defects are minor and do not prevent occupation or safe use.
Defects Liability Period (DLP)
Usually 12 months (commercial) or statutory warranty periods (residential). The builder must return to fix any defects that arise from poor workmanship.
Final Completion
Occurs at the end of the DLP. The Superintendent does a final inspection. If all defects are rectified, a "Final Certificate" is issued, and the remaining Retention money is released. The contract is now effectively closed.
Builder’s note: If the contract requires specific documents at PC (as-builts, O&M manuals, compliance certificates), build them progressively. The fastest PC is the one you’ve been preparing for since day one.