Practical completion

Practical completion (PC) is the point at which the works are complete except for minor defects and omissions, and can be used for their intended purpose - the trigger for half your retention, the end of liquidated damages exposure, and the start of the defects liability period.

PC is defined by the contract, not by common sense, and the definition varies: some contracts require every document, manual, certificate and approval before PC can be certified, which puts the date - and everything hanging off it - in the certifier's hands.

For a subcontractor, the trap is a PC definition tied to the HEAD contract's completion rather than your own trade package: your milestones then wait on other trades and the builder's program.

Why it matters to subbies

Money hangs off this date: retention release, the LD cut-off, the DLP clock. Check whose completion your subcontract's PC actually means, and what paperwork can hold certification hostage.

General information for Australian subcontractors, not legal advice - contract drafting and state legislation vary and change; your document and your state's Act govern. Written by Mat Kennedy at The Construction Contracts Co.