Practical completion and sign-off — what they mean
Practical Completion is when the space is usable — you can move in. Sign Off is when snags are cleared and the work meets the agreed standard. The 12-month workmanship warranty starts at Sign Off, not Practical Completion.
Two related but distinct moments at the end of every Beams project: Practical Completion and Sign Off. Knowing the difference matters.
Practical Completion
Practical Completion is the third milestone. It means: all scope items have been installed and the space is usable. You can move in. The work is recognisable as the project the contract described.
Snags may still exist — small items that need cleaning up. Practical Completion does not mean every detail is finished; it means the space functions as a renovated home.
The third milestone payment (typically 20% of the construction fee — projects on custom milestones may use a different split) is released against Practical Completion.
Sign Off
Sign Off is the fourth and final milestone. It means: snags have been cleared, certificates are in place, the work meets the agreed standard, and you've confirmed that.
The fourth milestone payment (typically 30% of the construction fee — the largest single payment on the standard milestone split) is released against Sign Off. The 12-month workmanship warranty starts at this point — not at Practical Completion.
Why the two moments are separate
Snags are normal. Even on a well-run project, small things surface in the first weeks of using a renovated space — a door rubbing slightly, a tile that needs re-grouting, a light switch in the wrong position. Practical Completion lets you start using the space and lets the build wind down; Sign Off captures the post-snagging state where everything is properly finished.
Splitting the moments protects both sides. The customer doesn't pay the final payment until snags are cleared; the builder doesn't get held over a final payment for cosmetic things that surface only once the customer is living in the space.
What the 28-day snag window covers
Between Practical Completion and Sign Off you have a 28-day window to identify and raise snags. The article Snagging — the 28-day window covers the mechanics. Sign Off happens once the snag list is cleared.
What this means for you
When your builder marks Practical Completion, expect to move in (or move into the renovated parts) and start using the space. Use it actively for the next 28 days; that's when snags surface most reliably. When you Sign Off, the warranty clock starts and the project is closed.
Related articles
- Snagging — the 28-day window
- The 12-month workmanship warranty
- How construction payments work