Can irremediable defects prevent practical completion?

By Lindy Patterson2019-02-07T06:00:00

Lindy Patterson reviews the lessons of a recent case

The case of Mears Ltd v Costplan Services Ltd [2018] EWHC 3363 is a helpful reminder of potential issues for a contractor on practical completion when a completed scheme is the subject of an agreement for lease (AFL).

Mears was to take a 21-year lease of two blocks of student accommodation in Plymouth from developer PNS after completion. Costplan was the employer’s agent and the building contract was JCT 2011. Whether practical completion had been reached was disputed, as Mears complained 50 rooms were smaller than the AFL specified.

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