Glossary
Practical completion
Also called: PC
Practical completion is the point at which building works are complete except for minor defects that do not prevent the property being used for its intended purpose, as defined in the building contract.
An example
The superintendent issues a certificate of practical completion. This triggers the final progress payment, the start of the defects liability period and, for an off-the-plan project, settlements with buyers.
Why it matters
Practical completion often triggers loan milestones and the countdown to repayment. Delays in reaching it can push a project towards its loan expiry, so it is central to the exit timeline.
Points to check
Read how practical completion is defined in your building contract and who certifies it. It usually triggers the final payment, the start of the defects liability period and settlement of pre-sold dwellings. Lenders may require evidence of completion, occupancy certificates and final quantity surveyor reports before releasing the last payment. Plan the timeline for sales settlements and insurance changes around the expected completion date.