Practical Completion means that:
- Under the standard building contracts, it commences the defects rectification period commences (usually 12 months, but it can be 6 months);
- It releases half of any retention monies kept back from all interim payments up to (but not including) practical completion;
- The contractor’s obligation to insure the work ceases and the employer has to insure the work (even if the contractor is still on site rectifying defects);
- It triggers the final account process;
- The contractor will then be liable for any damage to the work, site, materials etc (as it will not be covered by the insurance that covers the construction period).
