The final stage of a renovation — snagging, defects liability, and practical completion — is where many projects stall or deteriorate in relationship. Understanding the process and your rights as a client determines whether the project finishes well.
Practical completion is the point at which the contractor hands over a substantially complete building to the client. It is not the same as a perfect building. Defects that are not structural or safety-critical do not prevent practical completion — they are recorded on a snagging list and remediated during the defects liability period (DLP) that follows. Understanding this distinction, and the rights and obligations of both parties during the DLP, determines whether the final phase of a renovation finishes professionally or descends into dispute.
What practical completion means
Practical completion is a legal status in the JCT contract (and most standard building contracts). When it is certified, several things happen simultaneously:
- —The client takes possession of the building
- —The contractor's obligation to insure the works transfers to the client
- —The defects liability period begins (typically 6–12 months)
- —Half of the retention is released (typically 2.5% of the contract sum)
- —The contractor's liability for liquidated damages (delay penalties) ceases
Practical completion should be certified when the works are substantially complete — not when they are perfect. The standard test is whether the building can be used for its intended purpose. Minor defects (a door that sticks, a light fitting missing a cover plate, a section of skirting not yet painted) do not prevent practical completion. A major defect (a bathroom that cannot be used, a structural element not complete, a heating system not commissioned) does.
Do not withhold practical completion to exert leverage on the contractor for minor defects — this approach tends to create more problems than it solves and may expose the client to claims for damages or interest on the withheld retention.
The snagging list
A snagging list is a systematic record of defects identified at or around practical completion. It should be:
Comprehensive: walk every room, every surface, every fitting. Snagging at handover is systematic — not a quick look around. Allocate half a day for a 3-bedroom house renovation; a full day for a large or complex project.
Specific: "cracked tile in en suite shower, third tile from the left on the floor, 300mm from the drain" is a snag. "Bathrooms need attention" is not. Each item should be locatable by someone who was not present when the snagging was done.
Categorised: distinguish between defects (items that should have been done correctly and were not) and variations or extras (items the client wants changed that were built to specification). Contractors are obliged to remedy defects; they are entitled to charge for variations.
Written: issue the snagging list in writing (email is sufficient) to the contractor and retain a copy. Do not rely on verbal agreements about what will be remedied.
Common snag categories
Decoration: the most common category. Paint applied in insufficient coats, brush marks on woodwork, patches where coverage is thin, decoration applied before joinery was fixed (leaving gaps and overlaps), paint on hardware that should be clean.
Joinery: doors that do not open and close cleanly (either binding or not latching), gaps at mitres in skirtings and architraves, built-in furniture that does not align or open smoothly, drawer runners not adjusted.
Tiling: lippage at tile joints (one tile higher than its neighbour), grout joints that are inconsistent in width, silicone applied over grout residue or on surfaces that were not clean, missing silicone at internal corners.
Plumbing: taps or valves that drip or are stiff to operate, shower controls that are not correctly calibrated, cisterns that run on after flushing, visible unsupported pipework.
Electrical: light switches and sockets not level, missing cover plates, luminaires that flicker or do not operate correctly, circuit labelling not complete.
External works: paving joints not grouted, drainage outlets not cleaned and functional, gate ironmongery not adjusted.
The defects liability period
During the DLP (typically 6–12 months after practical completion), the contractor is obligated to return to site and remedy defects that emerge. This covers genuine construction defects — items that were built incorrectly or have failed due to poor workmanship or materials. It does not cover damage caused by the client or normal wear and tear.
Notifying defects: notify the contractor in writing when defects emerge during the DLP. Keep a record of all notifications. The contractor should respond within a reasonable time (the contract may specify a period — 7–14 days for non-urgent defects; 24–48 hours for urgent ones like heating failure or water ingress).
Failure to return: if the contractor fails to return to remedy defects despite written notification, the client has the right to engage another contractor to carry out the remediation and recover the cost from the original contractor. This right should not be exercised without giving the original contractor reasonable opportunity to respond and attend site.
End of defects liability: final retention release
At the end of the DLP, the contract administrator (or the client, on a non-administered contract) issues a making good defects certificate confirming that the contractor has remediated all notified defects. This triggers the release of the remaining retention (typically 2.5% of the contract sum).
The retention should not be released before all notified defects are remedied. The defects must be genuinely remediated — not merely patched. A door that binds because the frame was fitted out of plumb is not fixed by planing the door; the frame must be re-hung.
Dispute resolution
Where defects are disputed (the client says it is a defect; the contractor says it was built to specification), the mechanisms available are:
Adjudication: a rapid form of dispute resolution under the Housing Grants Construction and Regeneration Act 1996. Either party can refer a dispute to an adjudicator, who produces a binding decision within 28 days. Cost: typically £3,000–£8,000 in fees. The adjudicator's decision is binding unless and until overturned in court.
Mediation: a non-binding facilitated negotiation. Cheaper and faster than adjudication; appropriate where both parties are willing to compromise.
Court: small claims court (up to £10,000), fast track (£10,000–£25,000), or multi-track (£25,000+). Slow and expensive relative to adjudication; appropriate where the relationship has entirely broken down and the sum is large.
For disputes below £5,000 in a residential context, the Chartered Institute of Arbitrators and the Royal Institution of Chartered Surveyors both offer low-cost dispute resolution services that are faster and cheaper than court.
ASAAN's approach to project close-out
ASAAN has delivered snagging and close-out reports on complex multi-property estate projects, including estate-scale renovation programmes with 300+ tracked tasks across multiple properties. Structured close-out processes — systematic defect tracking, trade-by-trade sign-off, photographic records of remediated items — are a core part of professional project delivery at the level of project ASAAN operates on.
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