New Guidance On The Date Of 'Practical Completion' And Its Broader Implications

In our earlier update concerning the Supreme Court of NSW decision in Fairfield City Council v Abergeldie Contractors Pty Ltd¹ (Abergeldie)  ( see here) we set out the reasoning of Justice Ball in relation to determining whether 'practical completion' has occurred. His Honour's view was that practical completion was to be interpreted as a matter of 'objective fact' and not by reference to the certification mechanisms contained in the contract to facilitate proof of practical completion (i.e. not the date the superintendent issued the certificate of practical completion).

The counter-argument that this 'objective' interpretation would, in the context of delay or failure by the superintendent to certify practical completion, result in uncertainty as to the occurrence of reference dates failed. Ball J reasoned that the contractor could readily overcome such uncertainty by ensuring that the payment claim submitted following completion of the work covered all remaining