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Snag List

A snag list, or punch list, records incomplete or defective construction items found around handover. Each issue should be located, described, assigned and verified when corrected. The list does not itself decide practical completion, who is liable or whether payment can be withheld.

From the Money Master HQ dictionary, founded by Shihan Sheriff (FCMA, VP of Finance at Nomod, CFO at Esanjo Ventures). How these definitions are written.

What it means

A snag list is a record of incomplete or defective items found around construction handover, and it may be called a punch list in other markets. Entries should be specific enough for someone to find, fix and verify the issue: an entry such as "paint bad" invites disagreement, while "scratched paint on north wall of room 204" is easier to assess and close.

The list can include a scratch, missing fitting or faulty operation, but it should not be used to hide a serious safety defect behind a label that sounds minor. Inspection should use the contract scope, drawings and specifications, walking each area systematically and testing features rather than judging only appearance.

Note the room, item, defect, photograph, date and responsible party where known; a snag list can be prepared by the client, consultant, contractor or an independent inspector, depending on the project. The person who records an item does not necessarily decide legal responsibility, and a contractor may dispute whether damage occurred before or after handover, so keep photographs, access logs and inspection notes to help resolve the question.

RICS guidance on defects and rectification describes how defects are identified and managed under construction contracts, and JCT discusses rectification periods after practical completion in its UK standard-contract context. These sources do not make one rule universal for every project, because the signed agreement, defect clauses and local law decide who must fix what and when.

Practical completion can occur while minor items remain if the contract and relevant standard allow it, but a snag list is not itself a certificate of practical completion, and a long list may show that work is not sufficiently complete. The certifier must assess the significance of each item and should not use a target opening date as the sole reason to certify.

Prioritise safety and operational issues, since a failed fire door or exposed electrical work may require the area to remain closed until fixed, while cosmetic touch-ups can be planned around occupancy if the contract permits it. Assign deadlines that reflect the risk and access needed, because a single percentage closure rate can hide one critical open defect.

A contractor marking a line "done" is not the same as acceptance by the owner or certifier, so track both completion claim and verification date. A clear workflow assigns each item a status (reported, assessed, accepted for correction, work underway, ready for reinspection or closed) alongside a responsible person and target date.

If a fix requires a replacement part with a long lead time, record the interim safety or operating plan, and do not close an item because a purchase order was placed. Payment consequences vary: a contract may provide retention or other means of ensuring defects are addressed, but it does not follow that all final payment can automatically be withheld until every tiny snag is fixed, so read the payment and notice provisions, because arbitrary withholding can create a new dispute and a costed list may help determine a proportionate response when the contract permits one.

The rectification period can bring new issues after occupation, so maintain a process for reporting defects discovered later, with dates and access arrangements, and distinguish defects from wear, damage by users or a change in owner preference; not every later problem belongs on the contractor's original snag list, and some latent defects can have different remedies. A snag list helps turn a vague handover argument into a set of testable items and supports accountability and safety, but it does not by itself decide practical completion, retention or legal liability, so use the contract and competent inspection to resolve those questions.

In practice

Real-world examples.

1

Example

A new office has 60 snags, including damaged paint, a sticking door and a missing socket cover. Each is logged with a room, a photograph and a responsible party. The list becomes the working agenda for the contractor's final visits.

2

Example

A client considers holding final payment until every snag is cleared. Its adviser first checks the payment and notice provisions, because the contract may allow only a proportionate retention rather than withholding everything. The client agrees a costed list with the contractor instead of making an arbitrary deduction.

3

Example

A tenant photographs each snag during a move-in walk-through and sends the dated set to the landlord's agent the same day. When a later dispute arises over who caused a scratched worktop, the dated photographs settle the question. The tenant avoids paying for damage that was already there.

Formula

Calculation

Snag closure rate = Snags verified closed / Snags recorded x 100 Worked example. A new office fit-out records 60 snags. After reinspection, 54 are verified as fixed, so the closure rate is 54 / 60 x 100 = 90%. The six open items are 6 / 60 x 100 = 10% of the list, so before reporting 90% as good progress, confirm that none of them is safety-critical and that all 54 closed items were inspected by the owner or certifier, not just marked done by the contractor. If the six open items are priced at $2,400 on a costed list, that figure gives both sides a proportionate starting point for discussing any holdback, provided the contract permits one.

Case study

Seen in the real world.

This illustrative and entirely fictional case follows Oasis Restaurants, an invented chain inspecting a new fit-out. It photographs each issue, separates safety defects from cosmetic snags and tracks contractor responses against the agreement. It verifies corrections before closing items; whether the contractor bears every cost depends on the contract and facts. The inspection records 42 items. Five are safety-related, such as a kitchen extraction fault and a door that does not close fully, so they receive short deadlines and the kitchen stays closed until each is verified.

The other 37 are cosmetic, such as scuffed paint and a loose skirting board, and are scheduled around the opening plan with the contractor's agreement. At the end of the first week the contractor reports 30 items done. The restaurant's manager reinspects and verifies 26, so the log shows 26 closed, 4 ready for reinspection and 12 still open. Only the verified figure is reported to the owners.

Watch out

Common mistakes.

  • Rushing inspection and recording vague defects without locations or photos.
  • Calling a safety-critical fault a minor snag to justify opening.
  • Withholding all payment automatically without checking contract terms.

Questions

People also ask.

What is a snag list?

A list of incomplete or defective items identified around construction handover.

Who fixes the snags?

Responsibility depends on the agreement and cause of each issue, not the list alone.

What is another name?

Punch list is another common name.

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Last updated · October 8, 2026
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