Acceptance protocol

What it means

A handover protocol is a written record that one party delivered and the other accepted a piece of work, machine, software, property or other performance. It states the date, the subject, its condition at handover, defects and unfinished items found, deadlines for fixing them and the signatures of authorised persons on both sides.

Under a contract for work, acceptance is a key moment. It usually triggers the contractor’s right to payment, passes the risk of damage to the client and starts the warranty period. The precise effects depend on what the parties agreed in the contract.

A handover protocol differs from a delivery note in scope. A delivery note confirms that goods arrived, while a handover protocol also confirms their condition and functionality, often after a trial run. For complex deliveries such as software or technology it is sometimes called an acceptance protocol.

How it works in practice

We advise clients not to sign the protocol without reservations if the work is not finished. All visible defects and outstanding items should be listed specifically, with agreed deadlines for fixing them. Reservations written in the protocol are much easier to rely on later than verbal promises.

For the accounts, the acceptance date is often decisive. For a machine or building, it may mark when the asset is put into use and depreciation begins; under a finance lease it determines the start of the contract. The protocol is therefore an accounting document and should reach the accountant.

For services and projects invoiced in stages, the handover protocol is often a condition for invoicing. If the client refuses to sign without stating any defects, the contract should specify when the work is deemed accepted without a signature, for example after a set period.

What to watch out for

Signing without reservations does not mean the client loses all claims. Hidden defects that could not be detected at handover can be raised later under liability for defects and the warranty. Obvious defects that could have been seen, however, are harder to claim.

The protocol must be signed by someone authorised to act for the company or holding a power of attorney. If, for example, a site manager signs without authority, there may later be a dispute over whether acceptance took place at all. This is worth addressing in the contract in advance.