Practical completion handover checklist
Practical completion is a critical milestone that triggers defects liability, release of retention, and the end of LD accrual. This checklist is for principals, contractors, and their lawyers managing handover.
This is a 12-step checklist for practical completion and handover on a construction project. It covers inspection, certification, documentation, and transition.
The checklist
Request PC inspection
Contractor requests a practical completion inspection under the contract notice clause.
Conduct PC inspection
Superintendent and principal attend site and inspect against PC definition.
Prepare defects list
Prepare list of minor defects and incomplete work that do not prevent PC.
Issue PC certificate
Superintendent issues PC certificate identifying the date of practical completion.
Handover manuals and warranties
Handover operation and maintenance manuals, as-built drawings, and product warranties.
Handover keys and access
Handover keys, access cards, and security codes.
Confirm insurance transition
Transition from contract works insurance to principal's operational insurance.
Release partial retention
Release 50% retention (or contract amount) on practical completion.
Start defects liability period
Commence the defects liability period and diarise the expiry date.
Obtain occupancy certificate
Obtain occupation certificate from the relevant certifier or council.
Transfer utilities
Transfer utility accounts to the principal or operator.
Close out LDs
Stop liquidated damages accrual from the PC date.
When this checklist applies
Use when a project approaches practical completion and handover.
Common pitfalls
- PC certificate issued before defects list agreed
- Retention released without defects liability starting
- Insurance gap between builder's and principal's cover
- Occupation certificate not obtained before handover
- LD accrual continuing past PC date
Run this checklist on a real matter
Quillio can verify PC documentation and prepare the handover checklist. See /practice-areas/construction-lawyers or start a free trial.
General guidance for practical completion handover. Apply specific contract terms and jurisdictional requirements.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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