In every construction project, reaching the milestone of Practical Completion (PAC) marks a turning point. At this stage, the works are substantially finished, the project is ready for handover, and the contractor’s role shifts from building to addressing defects.
But here’s the question many project managers and contract administrators face:
Can variation orders still be issued after Practical Completion?
What Practical Completion Really Means
Practical Completion does not mean the project is 100% finished. There may still be minor “snagging” items to resolve, but the works are considered fit for their intended purpose.
Most construction contracts move into the Defects Liability Period (DLP) after PAC, during which the contractor’s primary obligation is to rectify defects — not to carry out new or altered works.
Because of this, variation orders (changes to the original scope) are generally intended to be issued before PAC.
Why Post-PAC Variations Are Rare
Once Practical Completion is certified:
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The contractor may have demobilized staff and equipment.
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Materials ordered for the original works have been finalized.
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Budgets are closed and project accounts prepared.
Requesting variations after PAC can:
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Delay final project closeout.
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Disrupt pricing and schedules, requiring fresh resource allocation.
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Lead to contractual disputes if the right to vary is not clearly stated in the contract.
Without a specific clause allowing post-PAC variations, contractors are typically not obliged to carry out such work.
Contract Language is the Deciding Factor
Whether a variation order after PAC is enforceable depends on the wording of the contract.
Some contracts include clauses such as:
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“The principal or superintendent may instruct variations at any time, including after Practical Completion.”
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“Variations during the Defects Liability Period will be treated as additional works, with separate payment terms.”
If no such clause exists, the contractor can refuse post-PAC variations as outside the agreed scope.
Best Practices for Managing Variations Around PAC
To reduce risk and avoid disputes:
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Include Clear Clauses – Define rights and limits for post-PAC variations.
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Use Written Instructions – Always document variation orders in writing.
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Negotiate Terms – Agree on pricing and timeframes before starting post-PAC work.
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Communicate Early – Raise potential changes before PAC whenever possible.
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Separate Defects from Variations – Remember: fixing defects is an obligation; post-PAC changes are a new agreement.
Conclusion
Variation orders after Practical Completion fall into a legally sensitive area. Unless your contract clearly allows them, the right to issue such orders usually ends once the PAC certificate is issued.
For project owners, contractors, and construction managers, the key is clear contract drafting and early communication — ensuring any post-PAC works are agreed in advance, fairly priced, and properly documented.
