Practical Completion vs Perfect Completion: Why Contractors End Up Working for Free

Theme: Project Closure; Module: Completion to Termination

Author: Dr. Pradeep Reddy Sarvareddy

Published Date: 19 Jan 2026

“Perfection” is not a legal requirement in construction.  Even when a work is completed, we don’t say “perfectly completed”, but we say “practically completed” for the intended use.  Yet, some Contractors are misguided or exploited, and end up working for free and keep on spending money on minor items.  Legally, once a project is “practically completed”, you can handover and move on to the next stage.  Know the legal concepts, snag lists, substantial performance and similar aspects to protect yourself.

There is no such thing as Perfect Completion.  Yet, Contractors are forced to spend crores of Rupees to satisfy the “Contract”.  Understand your rights and all you need to show is “Completion”, which is the “Practical” aspect. 

Legally, “completion” means the end of all the Works “for intended use”.  This means that even if “minor items” remain (which are noted in a Snag List), the project is deemed to be Completed.  Minor items are those that do not affect safety, functionality or the intended use of the Project.  Then, the Contractor moves on to the next stage as per the Contract, which could be taking over by the Department or the Start of the Defects Liability Period (DLP) or the Start of Toll Collection (also known as “Commercial Operations Date” (COD)) or something similar.

Several departments have well written Codes or Standards that include this process.  But, most people fail to review such documents and fail to know their rights.  The result is that Contractor is forced to continue working even after “completion”, the DLP does not start, the toll collection does not start, the final bill is not recorded and expenses keep on increasing.  Remember that a construction site is not a laboratory to achieve “perfection”.  Certain amount of tolerance is allowed as per Engineering Codes.

“Just this one minor work”.  Sounds like a simple request from the Department.  Now ask the Department to pay the Contractor “just Rs. One more”.  I repeat, “just Rs. One more”.  The Department will not.  If a Department is not willing to give the Contractor just One Rupee more than the Contract value, why or how can the Contractor be expected to work on that one minor work and still continue to lose more money?

The International best practices also recognise minor items and snag list, and this stage is considered to be the “completion”.  Even Courts have held that substantial completion of work except for minor defects is sufficient.  It is the duty of the Department to takeover or allow the Contractor to move to the next stage of the Contract after “completion”.  Yet, out of ignorance or fear, Contractors continue working for free even after “completion”.

Enough is Enough.  Move on.