New Home Handover in Tasmania: What to Inspect at Completion

Practical completion is a legal milestone, not just a walk-through. When your builder notifies you that your home has reached practical completion under the building contract, the clock starts on several time-limited rights — including your right to raise defects. Understanding what to inspect, what documents to collect, and how the defects liability period works puts you in a much stronger position at handover.

What Practical Completion Means Under a Building Contract

In Tasmania, residential building contracts typically define practical completion as the stage at which the work is complete except for minor defects that do not prevent the home from being used for its intended purpose. This is a contractual definition, not a building code definition — your contract is the authority on exactly what practical completion means for your project.

Practical completion is distinct from several other milestones that occur around the same time. The Certificate of Likely Compliance (CLC) — previously called an Occupancy Permit — is issued by your building surveyor under the Building Act 2016 (Tasmania) and confirms the home meets the approved plans and relevant standards. The CLC confirms regulatory compliance; the practical completion certificate confirms the contract is substantially fulfilled. You should expect both before moving in.

Once you accept practical completion, the final progress payment (or balance of the fixed-price contract) typically becomes due. This is why the Practical Completion Inspection — the PCI — matters so much. Defects you identify before you accept practical completion are generally the builder's obligation to fix before final payment. Defects identified after acceptance are typically handled through the defects liability period, which has its own timeline and process.

The Practical Completion Inspection (PCI)

The PCI is a walkthrough of the completed home, conducted with your builder or their site supervisor, before you formally accept practical completion. You are looking for any items that don't match the contract drawings and specifications, finishes that don't meet the required standard, and any defects or incomplete work.

Prepare for the PCI with a structured checklist and allocate enough time — a thorough inspection of a full home typically takes two to four hours. Work through the home room by room, checking every surface, fixture, fitting, and system. Bring a copy of your contract drawings and specification so you can compare what was agreed against what was delivered.

Should You Hire an Independent Building Inspector?

An independent building inspector can attend the PCI with you or conduct a separate pre-handover inspection. They're a licensed professional who looks at the home without a relationship to the builder — which means they may identify things you would miss, and they have the technical vocabulary to document defects clearly in a written report.

Whether an independent inspection is worthwhile depends on how much confidence you have in your builder's quality control and your own ability to identify defects. For most clients building with a reputable builder who has a clear inspection and defects process, a pre-handover independent inspection is an optional add-on rather than a necessity. For clients who want a third-party record of the home's condition at handover — particularly for their own peace of mind — it's a reasonable investment.

Our blog on building inspections in Tasmania covers what independent inspectors assess and how the process works in more detail.

Common Defects Found at Handover

Most defects found at practical completion are cosmetic or minor — paint touch-ups, grout that needs cleaning, door hardware that needs adjustment. Structural defects at handover are rare in a well-managed build, but finish quality varies. The most commonly noted items at PCI in residential construction include:

• Paint inconsistencies — thin coverage at edges and corners, brushmarks, or colour variation between coats
• Tiling grout lines that are uneven, incomplete, or improperly cleaned
• Cabinet doors and drawer faces that are slightly out of alignment
• Window and door hardware that doesn't latch smoothly or requires adjustment
• Silicone joints in wet areas that show gaps or haven't been tooled neatly
• Scratches or scuffs on flooring, benchtops, or glazing from the construction process
• External finish items — small gaps in cladding joints, paint finish inconsistencies on fascias

Document every defect you identify with photos and a written description. Your builder will typically have a defects schedule or PCI form for recording these items. Agree on a completion timeframe for each item before you accept practical completion or sign off on the payment.

Documents to Receive at Handover

At or shortly after practical completion, you should receive a package of documentation for the home. These documents are important both immediately (for operating the home) and in the future (for insurance, sale, or renovation purposes). Confirm you have each of the following before settling final payment:

• Certificate of Likely Compliance (CLC) — issued by your private building surveyor under the Building Act 2016
• Approved building permit drawings — the stamped set of drawings that formed the basis of your permit
• Appliance manuals and warranty documents — for all installed appliances, fixtures, and equipment
• Structural engineer's documentation — for any engineered elements (slabs, steel beams, trusses)
• Waterproofing certificates — from the licensed waterproofer for wet areas
• Electrical compliance certificate — from the licensed electrician
• Plumbing compliance certificate — from the licensed plumber
• Energy compliance documentation — NatHERS certificate confirming the energy rating
• Heating/cooling system commissioning records — for heat pumps, HRV, and underfloor systems
• Home warranty insurance certificate — where applicable under Tasmanian legislation

Store these documents somewhere you can retrieve them. Digital copies are useful; physical copies of the permit drawings and compliance certificates should be kept safely. You will need them if you sell the property, make future modifications, or make an insurance claim. For a guide to the permit process itself, see our post on building permits in Tasmania.

The Defects Liability Period

The defects liability period is a period after practical completion during which you can notify the builder of defects and the builder is obligated to return and rectify them. The length and terms of the defects liability period are set by your building contract — read your contract to confirm the specifics for your project.

During the defects liability period, keep a record of anything you observe that may be a defect. Minor settling cracks at wall junctions and nail pops in plasterboard ceilings are common in new homes during the first year as timber framing adjusts to its service conditions — these are typically covered during the defects period. Defects in workmanship, materials, or compliance with the contract specifications are different from normal settlement.

The defects liability period is separate from the statutory warranties that apply under consumer protection and home warranty legislation. Statutory warranties for major defects typically apply for a longer period than the contractual defects liability period. If you believe you have a serious defect after the contractual period expires, seek legal advice regarding your statutory rights.

How We Manage Handover

At Davies Design & Construction, the handover process is part of the project from the start, not an afterthought. We conduct our own pre-handover inspection before the client walkthrough — identifying and resolving items internally so the PCI is a presentation of a completed home, not a defects-finding exercise.

At the PCI itself, we walk through the home with our clients in detail, explain how every system operates, and answer questions about the home they've just built. We provide a complete documentation package at handover. Items noted during the PCI are scheduled and completed promptly — and we follow up after the defects period to close out any items that emerge during the first year of occupancy.

If you're planning a new home in northern Tasmania and want to understand more about our process — from first enquiry through to handover — get in touch. We can walk you through what the build journey looks like from design to keys.

Common Questions

What is practical completion in a Tasmanian building contract?

Practical completion is the contractual stage at which the home is complete except for minor defects that don't prevent it from being used as a dwelling. Your contract defines it specifically. It is not the same as the Certificate of Likely Compliance (the regulatory compliance certificate issued by your building surveyor) — both are required before you move in, but they serve different purposes.

Do I have to accept practical completion if there are defects?

If there are significant defects at practical completion — items beyond minor cosmetic issues — you are generally entitled to withhold acceptance until they are rectified, depending on your contract terms. For minor items, the normal process is to document them on the PCI schedule and agree on a completion timeline, then accept practical completion with those items formally noted. Seek advice from a building lawyer or Consumer Building and Occupational Services (CBOS) Tasmania if you are in dispute with your builder about defects at practical completion.

What documents should I receive at handover in Tasmania?

You should receive the Certificate of Likely Compliance, approved permit drawings, compliance certificates for electrical and plumbing work, waterproofing certificates for wet areas, the NatHERS energy rating certificate, appliance manuals and warranties, structural engineering documentation, and (where applicable) home warranty insurance documentation. Your builder's handover package should cover all of these — if anything is missing, request it in writing before making final payment.

How long is the defects liability period in Tasmania?

The defects liability period is set by your building contract, not by a fixed statutory period that applies to all contracts. Read your contract carefully to understand the period and process that applies to your project. Separately from the contractual defects period, statutory warranties under consumer protection legislation may cover major defects for a longer period — seek legal advice if you have concerns about serious defects after the contractual period has expired.