Practical and substantial completion

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Legal and contractual solutions · Practical completion and defects

How are practical completion and substantial completion determined?

Contract wording, patent defects and the certifier's assessment

There is no universal factual test detached from the contract. The certifier must apply the relevant completion provision to the works as a whole, considering the nature and extent of incomplete work and known defects.

Quick answer

Apply the contract and assess whether any known omission or defect is more than trifling

Practical completion is a matter of fact and degree under the particular contract. Latent defects cannot prevent certification because they are unknown at the time. A known defect or incomplete item will prevent practical completion if it is more than trifling, assessed against the purpose and intended use of the works. Occupation or use is relevant evidence but does not establish completion by itself. Substantial completion under an engineering form likewise permits minor deficiencies where the contract allows, but its precise effect comes from that form.

IssuePosition
Primary sourceThe completion clause
Latent defectDoes not prevent certification when unknown
Patent defectPrevents certification if more than trifling
OccupationEvidence, not an automatic answer
AssessmentFact and degree for the works and intended use

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