Practical completion is the moment your new home transitions from a construction project to a finished residence. It is a legal milestone, a contractual trigger, and the point where responsibility for the property begins to shift from builder to owner.
For most clients, handover is the highlight of the entire build. You receive the keys, walk through a finished home, and start the next chapter. But it is also a stage that benefits from understanding. Knowing what practical completion actually means, what to look for during your handover inspection, and how the defects liability period protects you ensures the transition is smooth and the relationship with your builder remains strong well after you move in.
This guide covers every aspect of the practical completion and handover process for new home builds in Victoria. It explains your rights under Victorian building legislation, what quality standards to expect, and what to do if something needs attention after you have moved in.
What Is Practical Completion
Practical completion means the building work has reached the point where the home is reasonably fit for occupation. It does not mean every single item is perfect. It means the home is complete in all material respects and can be lived in safely and comfortably.
Under Victorian building contracts, practical completion triggers several important events:
- The final progress payment (or completion payment) becomes due
- The defects liability period begins
- Risk and responsibility for the property begin to transfer to the owner
- The occupancy permit is issued (or should be issued at this point)
It is worth noting the distinction between practical completion and absolute completion. Minor items that do not affect the livability of the home, such as a touch up to paintwork, a minor adjustment to a door handle, or a small cosmetic imperfection, do not prevent practical completion from being reached. These items are noted and rectified during the defects liability period.
The occupancy permit is issued by the building surveyor after a final inspection confirms the home complies with the building permit and the National Construction Code. This permit is a legal requirement. You should not move into a home without a valid occupancy permit.
What Happens at the Handover Inspection
The handover inspection is a structured walkthrough of the finished home. It is your opportunity to see every room, every surface, and every fitting before you take possession.
At Senka, the handover inspection follows a specific process:
Pre inspection by the builder. Before you arrive, the Senka team conducts its own quality review. This is not a quick glance. It is a systematic check of every room, every fixture, and every surface. Paint touch ups, door adjustments, cleaning, and minor rectifications are completed before you see the home. The goal is that clients find nothing to note, not that defects are discovered during the handover.
Guided walkthrough. You are walked through the home room by room. Each space is reviewed for completeness, quality of finishes, and operation of fixtures. Taps are turned on. Doors are opened and closed. Lights are switched. Drawers are pulled. Appliances are tested.
External review. The facade, driveway, landscaping, fencing, letterbox, and all external elements are inspected. Drainage, garden beds, turf, and concrete finishes are reviewed.
Documentation handover. You receive a complete set of handover documents including:
- Occupancy permit
- Warranty certificates for appliances, fixtures, and systems
- Maintenance guides for key elements (stone, timber, air conditioning)
- Spare paint (touch up quantities in each colour used)
- Spare tiles (where available)
- Keys, remotes, and access devices
- Emergency contact information for your builder
Defect notation. If any items require attention, they are documented during the inspection on a defect list. Both parties sign the list, and the builder commits to a rectification timeline. These items are typically minor and do not prevent you from moving in.
What to Check and What to Look For
A good handover inspection is thorough but measured. You are not looking for reasons to be unhappy. You are confirming that the home meets the standard you agreed to and that everything functions as intended.
Paintwork. Check walls and ceilings under natural light. Look for inconsistencies in coverage, roller marks, drips, and paint lines where wall meets ceiling (particularly relevant in square set homes where there is no cornice to mask the junction). Minor touch ups are normal and expected. Broad areas of uneven coverage are not.
Joinery. Open and close every door, drawer, and cupboard. Doors should swing freely without catching on carpet or tile. Drawers should operate on their runners smoothly. Soft close mechanisms should engage consistently.
Tiling. Run your hand across tiled surfaces and check for lippage (where one tile edge sits higher than the adjacent tile). Look at grout lines for consistency and completeness. Check wet area tiles for correct fall toward floor wastes by pouring a small amount of water.
Benchtops. Inspect stone benchtops for chips, scratches, or uneven joins. Check that the edge profile matches your selection. Verify that the seal between benchtop and splashback is continuous and neat.
Tapware and plumbing. Turn on every tap (hot and cold) and flush every toilet. Check water pressure and confirm hot water reaches each outlet. Look under sinks for any signs of moisture.
Electrical. Switch on every light, test every power point (bring a phone charger), and operate rangehood and exhaust fans. Test the doorbell. Check that switches are level and aligned.
Windows and doors. Open and close every window. Check locking mechanisms engage and disengage. Inspect glass for scratches or marks. External doors should seal against weather strips without gaps.
Air conditioning. Run the system in both heating and cooling mode. Check that air flows from every outlet. Confirm the thermostat and controller operate correctly.
External. Walk the full perimeter. Check brickwork for mortar consistency and clean finish. Inspect the driveway for cracks or surface defects. Confirm landscaping matches the plan. Check that fencing is plumb and gates open freely.
A practical note: Bring a notebook and a pen with you. Note each item with its location and a brief description. Photographing items on your phone provides a useful record. Be specific. “Paint mark on master bedroom west wall above window” is useful. “Paint issue in bedroom” is not.
The Defects Liability Period: Your Rights as a Homeowner
The defects liability period is a contractual and statutory protection that gives you recourse if defects emerge after you have moved into your new home.
Under Victorian legislation, several timeframes apply:
- Two years for non structural defects under domestic building insurance (DBI). This covers finishes, fixtures, fittings, waterproofing, tiling, paintwork, cabinetry, and all other elements that are not part of the structural system.
- Six years for structural defects under DBI. This covers footings, slabs, framing, load bearing walls, roof structure, and any element that forms part of the structural integrity of the building.
- Ten year limitation period under the Building Act 1993. This is the maximum period within which a building action can be commenced, running from the date of the occupancy permit or certificate of final inspection. Implied warranties under the Domestic Building Contracts Act 1995 can be enforced within this period.
These periods are established under the Domestic Building Contracts Act 1995, the Building Act 1993, and the Ministerial Order governing domestic building insurance in Victoria. They exist regardless of what your individual building contract states.
What qualifies as a defect:
A defect is work that does not meet the standard required by the building contract, the Building Act, or the applicable building regulations. This includes:
- Work that is not completed to a reasonable standard of workmanship
- Work that does not comply with the approved plans and specifications
- Materials that are not suitable for their intended purpose
- Structural work that does not meet engineering requirements
- Work that does not comply with the National Construction Code
What does not qualify as a defect:
- Normal wear and tear from living in the home
- Damage caused by the homeowner or occupants
- Settlement cracks that fall within acceptable tolerances (hairline cracks in plasterboard and concrete are common in new homes during the first twelve months as materials cure and the building settles)
- Variations from the sample that are characteristic of natural materials (stone veining, timber grain variation, slight colour differences in brick)
How to Report Defects After Handover
If you identify a defect after moving in, report it to your builder in writing. A clear, documented process protects both parties and ensures nothing is missed.
How to report effectively:
1. Describe the defect specifically. Include the room, the element affected, and what the issue is. “Grout cracking along the south wall of the en suite floor tiles” is actionable. “Tiles are bad” is not.
2. Photograph it. A clear photo with good lighting is worth more than a paragraph of description. Include a reference for scale if the defect is small.
3. Send it in writing. Email is the most practical method. It creates a dated record that both parties can reference. Avoid relying on verbal reports or text messages for defect claims.
4. Be reasonable on timing. Not every defect requires an emergency response. A sticking door can wait for a scheduled maintenance visit. A plumbing leak cannot. Prioritise by urgency and communicate accordingly.
5. Allow reasonable access. The builder needs to inspect the defect before rectifying it. In some cases, the builder will send the relevant trade directly. In others, the builder will inspect first and then schedule the repair.
What to expect from the builder:
A professional builder will acknowledge your defect report promptly, inspect the item, and either rectify it or explain why it does not constitute a defect under the contract. Rectification should happen within a reasonable timeframe, and the builder should confirm completion.
If defects are not resolved:
If your builder does not respond to a defect report or refuses to rectify a valid defect, you have recourse through Domestic Building Dispute Resolution Victoria (DBDRV). This is a free government service that helps resolve disputes between homeowners and builders. For defects involving structural issues or significant non compliance, the Victorian Building Authority (VBA) can also be contacted.
These are escalation options, not starting points. In the vast majority of cases, defects are resolved directly between the builder and client through normal communication.
Senka’s Quality Assurance Process and What It Means for Handover
The quality of your handover experience is determined long before the handover day. It is built into the construction process itself through inspections, reviews, and standards applied at every stage.
Selected trade network. Every trade on a Senka build is chosen for their alignment with the company’s quality standard. This is not a casual preference. It is a deliberate curation of tradespeople who understand that their work represents the finished product a client receives. Trades who do not meet the standard are not invited back.
Stage inspections beyond the minimum. The building surveyor inspects at mandatory hold points: slab, frame, and completion. At Senka, additional internal inspections are conducted on every home we build before and after each stage. These catch issues before they are concealed by the next layer of work. A plumbing rough in error found before plasterboard is a correction. Found after, it is a costly repair.
Pre lining review. Before any walls are lined, all concealed services (electrical, plumbing, air conditioning, data) are reviewed against the plans. This is the last opportunity to verify that everything behind the walls is correct.
Waterproofing documentation. Every wet area waterproofing application is inspected and documented. Waterproofing failure is one of the most expensive and disruptive defects in residential construction. Preventing it is a quality priority, not an afterthought.
Pre handover defect sweep. Before the client attends the handover inspection, the Senka team conducts its own comprehensive defect review. The standard is simple: the client should walk through the home and find nothing to note. That does not always happen perfectly, but it is the target.
Handover documentation. The documentation package provided at handover is designed to give you everything you need to maintain and care for your home. Warranty certificates, maintenance schedules, appliance manuals, spare materials, and emergency contacts are all compiled and handed over in a structured format.
Post handover support. The relationship does not end at key handover. Senka provides post handover maintenance support. If a defect emerges in the weeks and months after you move in, you have a direct line to the builder, not a generic email address or an automated system.
The quality assurance process is not something that appears at handover. It is what makes handover a formality rather than a discovery process. When every stage is built right, the final inspection confirms rather than reveals.
Frequently Asked Questions
What is the difference between practical completion and final completion? Practical completion means the home is substantially finished and fit for occupation. Final completion occurs when all defects noted at handover have been rectified and all contractual obligations are fulfilled. You can move in at practical completion. Final completion is the administrative close of the contract.
Can I withhold the final payment if there are defects? Under most Victorian building contracts, the final progress payment is due at practical completion, not at final completion. You cannot withhold the entire payment because of minor defects. However, you may be entitled to retain a reasonable amount proportional to the cost of rectifying the noted defects. Your contract will specify the terms. If in doubt, seek independent advice before withholding payment.
How long does the builder have to fix defects noted at handover? There is no fixed statutory timeframe for rectifying handover defects, but the expectation is that they are addressed within a reasonable period. At Senka, defects noted at handover are typically rectified within two to four weeks depending on trade availability and the nature of the work.
Do I need to get a private building inspection before handover? You are entitled to have an independent building inspector review the home before or at handover. Some clients find this provides additional confidence. Others rely on the builder’s quality assurance and the building surveyor’s final inspection. It is a personal decision. If you do engage an inspector, ensure they are licensed and experienced in new residential construction.
What are common defects found at handover? The most common items noted at handover inspections are cosmetic: paint touch ups, minor door adjustments, small grout imperfections, silicon needing a clean finish, and scuff marks from construction. Significant structural or functional defects are rare in well managed builds because they are identified and resolved during construction.
Are settlement cracks a defect? Hairline cracks in plasterboard, concrete, and render are common in new homes during the first twelve to eighteen months. As concrete cures, timber dries, and the building settles under its own weight, minor cracking can occur. These are generally not considered defects unless they exceed acceptable tolerances. At Senka, settlement cracks that develop after handover are addressed as part of a scheduled maintenance visit, typically around three to six months after move in.
What does the defects liability period cover in Victoria? Victorian legislation provides tiered protection. Under domestic building insurance, non structural defects (finishes, fixtures, fittings, waterproofing) are covered for two years and structural defects (footings, frame, load bearing elements, roof structure) for six years from practical completion. The Building Act 1993 also provides a ten year limitation period for commencing building actions. These protections apply regardless of what your building contract states.
Who do I contact if my builder does not fix a defect? Start with written communication to your builder. If the defect remains unresolved, contact Domestic Building Dispute Resolution Victoria (DBDRV) for free mediation. For significant or structural concerns, the Victorian Building Authority (VBA) can investigate and take action.
What should I do in the first week after moving in? Run every tap, flush every toilet, operate every appliance, and use every door and window normally. Most functional defects reveal themselves through everyday use within the first week. Note anything that does not work as expected and report it to your builder in a single consolidated list rather than multiple individual messages.
Is the occupancy permit the same as the building permit? No. The building permit authorises construction to begin. The occupancy permit confirms the completed building complies with the building permit and is safe for habitation. You should not occupy a new home without a valid occupancy permit.
