GLOSSARY · ADELAIDE

Practical completion

Plain English

The handover stage of a new build, when the builder declares the project complete and the owner is asked to make final payment.

Practical completion is the contractually-defined point where the build is essentially done - all major work complete, all systems functional, the owner can take possession. The builder typically requires final payment at this milestone.

Independent handover inspection at practical completion is the most important inspection in a new build. It identifies defects the builder must remediate during the statutory warranty period.

Once you sign off on practical completion and release final payment, the builder's motivation to fix issues drops significantly. The defect list from a handover inspection is your leverage.

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