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
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Heat pumps, vehicle chargers and heating appliances must be sold with smart functionality.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
New-style degrees set for reformed ARB accreditation
Following the ARB Tomorrow's Architects competency outcomes for Architects.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.
Preserving, waterproofing and decorating buildings.
Many resources for visitors aswell as new features for members.
Using technology to empower communities
The Community data platform; capturing the DNA of a place and fostering participation, for better design.
Heat pump and wind turbine sound calculations for PDRs
MCS publish updated sound calculation standards for permitted development installations.
Homes England creates largest housing-led site in the North
Successful, 34 hectare land acquisition with the residential allocation now completed.
Scottish apprenticeship training proposals
General support although better accountability and transparency is sought.
The history of building regulations
A story of belated action in response to crisis.
Moisture, fire safety and emerging trends in living walls
How wet is your wall?
Current policy explained and newly published consultation by the UK and Welsh Governments.
British architecture 1919–39. Book review.
Conservation of listed prefabs in Moseley.
Energy industry calls for urgent reform.
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?