What does practical completion mean?

Practical completion means that the building work is at a stage where the house can be reasonably capable of being used for its intended purpose. When the builder is satisfied that the house is ready for inspection, you will receive a notice of practical completion.

It is recommended that you take care when inspecting the house with the builder to satisfy yourself that the builder has reached the practical completion stage. You should be reasonable, but not rushed into signing your acceptance that the house has been practically completed.

It is important that you do not overlook any major defects. It may be a good idea to employ an independent and reputable building consultant to assist you with this inspection.

Once you have moved in to your house, it may be difficult to prove that a defect was caused by the builder. In addition, once you've moved in, it may be difficult and disruptive for workmen to rectify any problems.

By law for contracts between $7,500 and $500,000, the builder is liable to make good, without additional cost, defects in the building work notified in writing within a minimum of four months from practical completion. Check your contract for the exact period of notification of defects.

Many builders offer a structural warranty which may be for up to 30 years covering the structural integrity of the building. However this may vary in both timeframe as well as what is covered for different builders.

If a dispute occurs about who is responsible to rectify a fault, you can take the matter to the Building Disputes Tribunal for determination.

About Darren Standish

Darren Standish established Property Prosperity in 2004 initially as a property development company, however after repeated requests for assistance the business evolved into a development consulting business.

Property Prosperity was initially focused on assisting clients with subdivisions and negotiating with councils to ensure that clients maximized their return on investment. Over the years additional services were gradually added to ensure the development process was as seamless as possible for its clients. We expanded into offering individually tailored finance solutions and then added Property Development Analysis, Property Sales and a Builder Broker Services.

Darren is the overachiever of the team and has more qualifications than your average university graduate. As well as completing a Bachelor in Economics, Bachelor in Commerce and post graduate in Accounting he subsequently went on to complete a Diploma in Financial Service, Diploma in Real Estate and Certificate IV in Building. He is a qualified Certified Practicing Accountant (CPA), a licensed Real Estate Agent, licensed Mortgage Broker and holds a Builders License.