Practical completion is not simply the day the last major item of construction is finished. The contract may also require testing, documents, approvals and handover activities, all of which need time in the delivery plan.
Put completion requirements into the programme
Construction can be nearly finished while the project is still some distance from practical completion. Testing may depend on permanent power, an operator may need training and the documents required for handover may still be with subcontractors who have left the site.
Those activities need to be planned with the physical work. Start by identifying the completion requirements in the executed contract and the documents it incorporates. Then programme the activities needed to satisfy them, including reviews, witnessing and any work by others.
Use the contractual test
Practical completion is assessed against the applicable contract. Do not substitute an assumption that the works are sufficiently finished, or that a planned opening date settles the question. The definition may include requirements for testing, documents and approvals as well as the condition of the work.
Minor outstanding items may be permitted, but their treatment depends on the wording and circumstances. List each item and assess its effect. A small component can be essential to safe operation; a much larger cosmetic item may have a different significance. The cost of rectification alone does not answer the completion question.
Check the dependencies behind each sign-off
Prepare a completion schedule showing the requirement, evidence, responsible person and date needed. Include the person who will inspect, witness or accept each submission. Confirm their availability before the programme depends on a particular appointment.
For example, a pump installation may be physically complete but unable to undergo the specified duty test until an upstream system is operating. Identify who provides that system and what must happen before testing can start. Recording the pump as “complete” in a progress report should not conceal the remaining dependency.
Follow the same approach for manuals and as-built information. A folder of supplier brochures may not meet a requirement for an operating manual specific to the installed system. Review a sample early enough to correct the approach across the remaining packages.
Separate occupation from certification
A principal may want early access, partial use or possession of part of the works. Establish the contractual arrangements before that happens. Access, possession, practical completion and statutory permission to occupy are not interchangeable descriptions.
Record the area involved, permitted activities, access restrictions and responsibility for security, care of the works and insurance. Check the effect on remaining construction and testing. The team also needs to understand any consequences for delay damages, defects periods and security under the particular agreement.
Make the inspection produce a usable record
Inspect against the requirements, not just a walk-round impression. Record outstanding items with a location, description, photograph where useful and an agreed action. Identify matters said to prevent completion separately from those that can remain afterwards under the contract.
Where the parties disagree, state the reason and the requirement in issue. A disputed completion date can affect substantial sums; an informal list that mixes preferences, defects and additional work will make the assessment harder.
The authorised person should issue the decision required by the contract. Do not assume that a certificate made conditional on future work has the same effect as certification under the agreed procedure.
Plan the work that continues after handover
Arrange access for rectification, supervision of work in occupied areas and verification that each item has been completed. Retain the necessary subcontractor contacts and resources. Closing the site office should not remove the means of meeting the remaining obligations.
Keep operational handover distinct from commercial settlement. Reconciliation of the price and the scope of settlement are addressed in Final Accounts: Closing the Commercial Position. Keep both workstreams active without treating one as proof that the other is complete.
