Handover and Practical Completion

The final stages of the build require a meticulous inspection to ensure everything is finished to the agreed standard.

What is Practical Completion?

Practical completion occurs when the building works are finished in accordance with the contract, and the home is reasonably fit for occupation. This means all major works are complete, and essential services like water, electricity, and gas are connected and functional. It does not mean the house is absolutely perfect. There may still be minor defects or 'omissions' that do not prevent the home from being lived in, such as a missing door handle or a small scratch on a wall. The builder will notify you in writing when they believe the project has reached this stage and will invite you to a final inspection.

Reaching practical completion is a major milestone because it usually triggers the final payment claim. It also marks the point where the risk for the property passes from the builder to you. This means you must have your home insurance policy active from the day of handover. You should also ensure that the builder has provided you with all the necessary certificates of compliance for plumbing, electrical, and glazing work. These certificates are your proof that the work has been performed by licensed tradespeople and meets the relevant safety standards.

Conducting the Pre-Handover Inspection

The final inspection, often called the 'walk through', is your opportunity to identify any defects or unfinished items. You should take your time and be very thorough. Check every tap, light switch, window, and door. Look for chips in tiles, scratches on glass, and uneven paint. It is highly recommended to bring an independent building inspector to this meeting. They will have a professional eye for detail and will know what constitutes a defect under the Victorian Guide to Standards and Tolerances. Bring a copy of your contract and specifications to ensure everything you paid for has been delivered.

During the inspection, create a 'punch list' of items that need to be addressed. Both you and the builder should sign this list. The builder will then typically have a set period, such as 14 days, to rectify these minor items before handover. If there are major defects that make the house uninhabitable, you can argue that practical completion has not yet been reached. In this case, you should not pay the final claim or take the keys until the major issues are resolved. Do not be pressured into signing a 'satisfaction' form if you are not genuinely happy with the state of the home.

Handover Day Procedures

Handover day is when you make the final payment and receive the keys to your new home. This should only happen after you have received the Occupancy Permit and all the items on your punch list have been addressed (or a plan for their rectification is agreed upon). The builder should provide you with a 'handover pack' containing manuals for appliances, warranties for products like hot water systems and air conditioners, and a list of the paint colours used. This information is invaluable for future maintenance and repairs. Make sure you also receive all the keys, including those for window locks and garden gates.

Once you have the keys, the 'maintenance period' begins. Most Victorian contracts include a three to six month period where the builder will return to fix any minor issues that arise as the house 'settles'. This might include small cracks in the plaster or doors that need adjusting. Keep a running list of these minor issues and present them to the builder at the end of the maintenance period. This is more efficient than calling the builder for every tiny problem. Remember that the statutory warranties for structural and non structural work continue long after the initial maintenance period ends.

• Schedule a final inspection during daylight hours
• Bring an independent inspector to the walk through
• Create and sign a comprehensive punch list
• Confirm receipt of all compliance certificates
• Ensure home insurance is active from handover day