Completion of work: Overview, definition, and example
What is completion of work?
Completion of work refers to the point at which a contractor, service provider, or employee has finished the tasks or deliverables outlined in a contract, agreement, or project scope. This milestone typically signifies that the work has been completed in accordance with the agreed-upon specifications, quality standards, and timelines. In many cases, the completion of work is followed by a final inspection, approval, or acceptance by the client or project owner, ensuring that everything is in order and meets the contract’s requirements.
For example, in a construction contract, the completion of work may occur when the building is finished and meets all specified design, safety, and regulatory standards.
Why is completion of work important?
Completion of work is important because it marks the end of the obligations for the party responsible for performing the work and triggers certain contractual rights and processes. For contractors and service providers, the completion of work is the point at which they are entitled to receive the final payment for their services or products. For clients or project owners, it signals that the work has been finished and is ready for final review, approval, or use.
Completion also sets the stage for the resolution of any remaining issues, such as correcting defects, addressing deficiencies, or fulfilling warranty obligations. It may trigger deadlines for final documentation, warranty periods, or the handover of any necessary licenses or ownership rights.
Understanding completion of work through an example
In a residential construction project, the contractor may have completed all the phases of building a house, from laying the foundation to installing appliances and finishing the interiors. Once the contractor finishes the final touches and ensures that everything is in compliance with the original specifications, they notify the client that the work is complete. The client or their representative inspects the house to confirm that all requirements have been met, marking the completion of work.
In another example, a software development company may be hired to build a custom application for a business. Once the application is fully developed, tested, and ready for deployment, the company informs the client that the work is complete. The client reviews the product to ensure it meets the agreed-upon functionality and design, and upon approval, the work is considered completed.
An example of a completion of work clause
Here’s how a completion of work clause might appear in a contract:
“The Contractor shall complete all work specified in this Agreement by [Completion Date]. Upon completion, the Contractor will notify the Owner, and the Owner shall have [X] days to inspect and approve the work. If the work is found to be in compliance with the contract terms, the Owner will provide written confirmation of completion, and final payment will be due to the Contractor.”
Conclusion
Completion of work is a significant milestone in any contract or project, signaling that the tasks or deliverables have been fulfilled according to the agreement. This step is essential for both parties to finalize their obligations, trigger final payments, and ensure that all terms and conditions have been met. For both contractors and clients, understanding when and how the completion of work is defined is crucial for avoiding disputes and ensuring a smooth conclusion to the project.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.