Sectional Completion ' Pitfalls & Risks

• Published date: 16 May 2023
• Law Firm: HKA
• Author: Mr Shanand Thiru

Shanand Thiru, Senior Consultant in the HKA Delay Team gives insight at the complexity and challenges of Sectional Completion.

With the world economic outlook being increasingly gloomy and uncertain, this can bring with it a commercial imperative for Employers to respond to these circumstances. We note that some are aiming to get construction projects to a stage where they can, at least in part, be operational in the shortest possible time, so as to have certainty of completion of elements of the required works. To do so, Employers can seek to achieve 'Sectional Completion' which can allow them to optimize the project timescales. However, the price of doing so can be to increase project complexity and risk. To pass this complexity and risk down to their Contractors can, in turn spell the difference between commercial success and failure for the supply chain.

Sectional Completion confers a contractual obligation on the Contractor to complete a defined part of the Works or "Section" by a prescribed date. By doing so, the aim is to enable the Employer to take over the Works on a phased basis whilst construction continues on other Sections. It is noteworthy that, typically, each Section attracts contractual damages in the event of late completion by the Contractor.

The contractual obligation under the JCT contract of Sectional Completion should not be confused with Partial Possession:

"...the Employer may, with the Contractors consent, use or occupy the site or the Works or part of them, for...