Essential law: Defects, part two

By Jane Burrows 2022-02-16T09:25:00

In the second article of the essential law series to look at the topic of defects, Jane Burrows explains when a defect could prevent practical completion as opposed to just being a snagging item

Practical completion is an important milestone in a construction project, and it has significant implications under a building contract such as:

Relieving the contractor of the risk of loss or damage to the works
Ending the contractor’s liability for liquidated damages
The release of retention, usually 50% at practical completion with the remainder to follow on the issue of the certificate of making good of defects
Starting the clock on the defects liability period and the limitation period for any defect claims.

Practical completion can also trigger events in relation to the commercial purpose of the development, such as the commencement of rent payments.

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