What practical completion means for your money

Practical completion is the point at which the works are finished for practical purposes, with only minor items left to do. It is often shortened to PC.

For the party carrying out the work, it matters because of what it sets off. It usually brings back the first part of your retention and stops delay damages. It also starts the defects period and the final account timetable.

In a bill of quantities, PC can also mean a prime cost sum. That is an allowance for goods or work bought in, adjusted to the actual cost later.

The JCT forms do not define practical completion. In general it means the works are complete, apart from minor items that would not stop them being used.

Your contract may have its own completion for your works, separate from the main contract's. Your retention, delay damages and defects period may hang on either one, so check which date each clause names.

A long snag list can mean the works are not practically complete. Whether they are is a question of fact on your job.

Retention is money held back from each payment as security for defects. Most contracts release it in two parts: the first at practical completion, and the rest after the defects period.

If release depends on main-contract performance or certification, have that condition checked against the applicable law. Housing Grants, Construction and Regeneration Act 1996, section 110 restricts such conditions where the Construction Act applies. Record the established release events and the payment dates that follow them.

See completion, retention and your final account.

Retention reform now forms part of the Commercial Payments Bill. The government's 7 September 2026 response says commencement regulations will be needed after Royal Assent. Check current law and your contract rather than assuming the proposed ban already applies.

Our Main-contract and subcontract administration support service tracks the relevant completion evidence and our Final account preparation and assessment service reconciles release applications. Where an amount remains withheld, Retention recovery checks the release conditions, evidence and outstanding balance.

Liquidated damages are a fixed sum for each day or week the work finishes late. They run from the completion date in the contract until completion is actually reached.

Check which completion event ends liability under your contract, including any sections or earlier take over. Some subcontracts instead address the main contractor's losses caused by your delay.

Check the end date the other party uses against the certificate. See time entitlement and delay costs.

Practical completion starts the defects period, called the rectification period in JCT and often the defects liability period elsewhere. During it, you put right any defects that appear.

At its end, the rest of your retention usually falls due, once the defects are made good. See completion, retention and your final account.

Many contracts set the final account timetable from practical completion. They say when you must submit your account, and when the other party must answer it.

Submit yours on time and complete. See preparing your final account.

A JCT main contract may treat agreed partial possession as practical completion of that part, affecting retention and delay damages. Do not assume this automatically releases your contract retention or ends your delay liability. Check your contract's linked milestones and any amendments.

Some contracts are split into sections, which is called sectional completion. Each section has its own completion date, its own delay damages and its own practical completion. Check which section your work sits in.

NEC uses its contractual definition of Completion, read with the relevant Scope requirements. Take over is a separate concept. For a subcontractor, check the Contractor's role and the contract works; the client's use of the main works is a different relationship.

The effect of Completion and take over on your delay damages and retention depends on your NEC contract, selected options and amendments. Distinguish your contract milestones from the client's use of the main works. See What is an NEC contract?.

• Ask for the practical completion date, and a copy of the certificate, in writing.
• Diarise the retention release, the end of the defects period and the final account deadline.
• Check any delay damages period against the certificate date.
• Keep your snagging and handover records.

Whether the works were practically complete on a given date can be disputed. If a lot of money turns on it, ask your solicitor.