Practical Completion
The stage in a construction project when the works are substantially complete and the employer can take possession. Triggers release of half the retention money and the commencement of the defects liability period.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Official guidance confirms that practical completion is generally marked by formal certification rather than mere occupation. HMRC's internal VAT manual states that 'a building is complete when an architect issues a certificate of practical completion in relation to it or it is fully used, whichever happens first,' reflecting the standard construction practice of an architect or contract administrator certifying practical completion once the works are substantially finished.
Where no formal certificate is issued — for example on a conversion project — the same guidance treats the relevant date as the point the building is first used: 'the date to use is the date when the building is first fully used.' This shows practical completion functioning as a defined trigger date used outside the construction contract itself, including for tax purposes.
Related terms
Official sources
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