What is practical completion and when do I make the final payment?

Practical completion is a defined contractual milestone rather than a feeling that the job looks done. It usually means the work is complete except for minor defects and omissions that do not prevent the property being used, and it triggers the final payment, the start of the defects liability period, and the handover of documentation.

Before you pay the final claim

1. 1Inspect thoroughly, with the contract and the specification in hand, and in daylight.
2. 2Prepare a written defects list, item by item, with photographs and locations.
3. 3Test everything that is supposed to work: every tap, every switch, every door and window, the hot water, the drainage.
4. 4Collect the documentation: compliance certificates for electrical, plumbing and gas, warranties, manuals, and the final building certificate.
5. 5Agree in writing which items will be rectified and by when.

Why the timing matters

Once the final payment is made, the only remaining pressure is the defects liability period and, beyond it, the statutory warranties. Both are real, and both are slower and more adversarial than a conversation held while money is still outstanding. This is not a reason to withhold unreasonably, and it is a reason to inspect properly before releasing it.

A defects liability period, commonly a few months, runs from practical completion and obliges the builder to return and rectify. It sits on top of the statutory warranty period rather than replacing it, which is a distinction builders occasionally blur.