Practical Completion and Handover

Practical Completion does not mean the home is finished, but it is the milestone that ordinarily triggers the handover process and the commencement of the defects liability period. Whether Practical Completion and handover occur at the same point in time depends on what the contract says - they are often separate and distinct processes.

Because so much turns on practical completion, a proper inspection matters. A separate guide explains the contractual meaning of practical completion; this guide focuses on the handover process itself and the practical steps a homeowner should take at and after handover.

Practical completion and handover are related but distinct

Practical Completion triggers the final payment and the start of the contractual defects liability period, and it sets the handover process in motion. Practical Completion and handover may occur at the same time, or they may be separate steps - that depends on the contract.

Importantly, insurance responsibility for the works can transfer at Practical Completion rather than at handover, depending on the contract and policy terms, so check your specific documents and do not assume you remain covered by the builder until you physically take possession.

Inspect systematically

Walk through the home methodically against the plans, specifications and selections, and record defects by room.

A quick look is not enough

Minor issues are easy to miss. A proper defects list is the moment to exercise your rights.

Distinguish defects from preferences

The question is whether the work complies with the contract and applicable standards, not simply whether you like it.

Consider an independent inspection

An independent building consultant can help if you do not have the expertise to assess workmanship.

Questions to ask before signing

What happens at handover?

How do I record defects?

What must the builder rectify?

How does the defects liability period start?

The key lesson

Handover is when the builder’s obligations are most acute. Inspect thoroughly and list defects before you accept the home. Be aware that insurance responsibility for the works can transfer at Practical Completion rather than at physical handover - check your contract and policy terms so you are not left uninsured.

Before You Sign

This guide provides general educational information for South Australian homeowners. It is not personalised legal advice. The effect of any issue depends on the wording of your own contract, schedules, Special Conditions, plans, specifications and the facts of the project. A good builder and a well-understood contract should work together. Before committing to one of the largest financial transactions you may ever undertake, consider having the actual contract reviewed so you understand the obligations, notice requirements and consequences before they are tested on site.

Before You Build. One Signature. One Chance.