At handover the contractor gives the building to the client, and responsibility for it moves with the keys. A proper handover includes a joint final inspection, a written snag list of defects to fix, test and commissioning results for services, a full set of documents (as-built drawings, operation and maintenance manuals, warranties and certificates), training for the people who will run the building, and the start of a defects liability period, usually 6 to 12 months, during which the contractor fixes defects that appear at their own cost. Do not accept a building without the documents. They are hard to get once the contractor has left.
Step 1: Practical completion
Practical (or substantial) completion is when the building can be used for its purpose, even if minor items remain. The client's consultant inspects and, if satisfied, issues a certificate of practical completion. This usually:
- Starts the defects liability period.
- Releases half of the retention money, depending on the contract.
- Ends the contractor's liability for delay damages.
- Moves insurance responsibility to the client.
Check what your contract says. See our construction contract checklist.
Step 2: Joint inspection and snag list
Walk every room with the contractor and your consultant. Test everything: doors, windows, taps, toilets, switches, sockets, air conditioners, lifts, pumps and the generator. Record each defect with location and photo. Our snagging checklist lists 40 things to check.
Agree a date for fixing the snags. Minor snags can be fixed after occupation; anything affecting safety or use must be fixed first.
Step 3: Testing and commissioning
Services must be tested and commissioned before handover, with written results:
- Electrical installation test certificate.
- Earthing and lightning protection test results.
- Water pressure tests and disinfection of tanks.
- Drainage tests.
- Fire alarm, extinguisher and emergency lighting checks.
- Lift inspection and certificate.
- Generator and changeover tests.
- Air conditioning commissioning.
Step 4: Collect the documents
| Document | Why you need it |
|---|---|
| As-built drawings | Show what was actually built, including hidden pipes and cables |
| Operation and maintenance (O&M) manuals | How to run and service equipment |
| Warranties and guarantees | Roofing, waterproofing, equipment, termite treatment |
| Test and commissioning certificates | Proof systems work safely |
| Material and product data | For repairs and replacements |
| Keys schedule | Every key, labelled |
| Occupation and other certificates | Required by authorities where applicable |
| Contact list of subcontractors and suppliers | For servicing and repairs |
Ask for both printed and digital copies.
Step 5: Training
The people who will run the building, such as caretakers, facility managers and technicians, should be shown how to operate the generator, pumps, fire alarm, air conditioners, lifts and any security systems. Record who was trained.
The defects liability period
During this period, often 6 to 12 months, the contractor must return to fix defects caused by poor materials or workmanship. To make it work:
- Keep a defects log with photos and dates.
- Report defects in writing as they appear.
- Do not let your own staff "fix" defects the contractor is responsible for.
- Hold a final inspection near the end of the period.
When all defects are fixed, a final certificate is issued and the rest of the retention is released. See planned building maintenance for what comes after.
Common handover mistakes
- Moving in before snags are recorded.
- Not testing every service.
- Accepting "we will send the drawings later".
- Losing track of keys.
- Not reporting defects during the defects period.
Who should attend the handover inspection?
- The client's representative, with authority to accept the building.
- The architect or project manager administering the contract.
- The structural and services engineers, for their parts.
- The contractor's site manager and key subcontractors (electrical, plumbing, lifts).
- The person who will look after the building, such as the facility manager or caretaker.
Bringing the future caretaker is often forgotten. They learn where valves, isolators and meters are, and they spot problems the designers miss.
Practical completion and final completion
| Item | Practical completion | Final completion |
|---|---|---|
| When | Building usable, minor items left | End of defects period, all defects fixed |
| Certificate | Certificate of practical completion | Final certificate |
| Retention | Usually half released | Remainder released |
| Responsibility for building | Moves to client | Client |
| Contractor's duty | Fix snags and defects | Ends, except for latent defects under the law and contract |
Handover for different building types
- Banks: security systems, strongroom doors, alarms and CCTV are tested with the bank's security team, and keys and codes are handed over under strict control.
- Schools: furniture, toilets, water and drainage are checked before pupils arrive, ideally in the holidays.
- Clinics: water, power backup and handwashing points are tested, and the health authority may inspect before registration.
Frequently asked questions
What is retention money?
A share of each payment, often 5 to 10 percent, held back by the client. Usually half is released at practical completion and the rest at the end of the defects period.
What are as-built drawings?
Drawings updated to show what was actually built, including changes made during construction and the routes of hidden services.
How long is the defects liability period?
Commonly 6 to 12 months from practical completion, as set in the contract.
Can I move in before all snags are fixed?
Yes, for minor snags, if the building is safe and usable. Record the outstanding items and agreed dates in writing.
Who keeps the handover documents?
The building owner, with copies for the facility manager. Store digital copies safely, because they are needed for every future repair and renovation.
What if the contractor does not return to fix defects?
The client can usually use the retention money to pay another contractor to fix them, after giving notice as the contract requires.
Are latent defects covered after the defects period?
Hidden defects that appear later may still be the contractor's or designer's responsibility under the contract and the law. Get legal advice if serious defects appear.
Should the final payment wait until documents arrive?
Yes. Make delivery of as-built drawings, manuals and certificates a condition of the completion certificate or final payment.
Want a smooth handover?
Vika Construction hands over every project with tested services, as-built information and a clear snag process. See our projects or contact us.
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