Practical Law Glossary Item 0-422-4322 (Approx. 2 pages)
As used in project finance, occurs when all mechanical and physical aspects of a project, except for punch list items, have been constructed and installed in accordance with the specifications set out in the construction contract. Once the project is mechanically complete it can be safely started and tested under actual conditions. Failure to achieve mechanical completion by a specified date typically results in the payment of liquidated damages (see Practice Note, Understanding Project Finance Construction Contracts).