{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Economic research and forecasting Economics Housing outlook Tailored market research Economic reports and data Inspiring Australia's building professionals HOUSING The only place to get your industry news Media releases Member alerts Submissions See all
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder and manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies and tool insurance Planning and safety services Building and planning services How can HIA Safety help you? Independent site inspections Solutions for your business Contracts Online HIA Tradepass HIA SafeScan HR Docs Trusted legal support Legal advice and guidance Professional services Industrial relations
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials and products Concrete, bricks and walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Falls from heights Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects COVID-19 Getting approval to build Sustainable homes
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Hear what our apprentices say Advice for parents and guardians Study with us Find a course to suit you Qualification courses Get your builder's licence Learn with HIA
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Get involved Become an award judge Join a committee Partner with us Get to know us Our members Our people Our partners Mates rates What we do Mental health program Charitable Foundation GreenSmart
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program Professional Builder / Renovator GreenSmart Industry networking Events National Conference
HIA products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Digital Australian Standards Contracts Online Shipping and delivery Purchasing terms & conditions Products Building codes and standards Economic reports Hard copy contracts Guides and manuals Safety and signage See all
About Contact Newsroom
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Change location
{{propApi.text}} {{region}} Change location
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Practical completion in Tasmania

Under a Tasmanian residential building contract practical completion is the final step, so it is important that the correct process is followed.

Practical completion determines when you get the final payment and when the defects liability period starts. 

What is practical completion? 

‘Practical completion’ means that building works have been completed in accordance with the contract, except for minor omissions and defects, and, where applicable, that the builder has done all that they are required to do under the contract to enable a certificate of occupancy to be obtained.

If you are unsure whether any omissions and defects are ‘minor’ or may prevent works from being used for their usual purpose, you should contact your HIA workplace advisor for guidance. 

What happens once you reach practical completion? 

On the day the builder believes the building works have reached practical completion, the owner must be provided written notice of practical completion and the claim for final payment. 

Within 5 working days of giving the Notice of Practical Completion, the owner and builder must meet on-site to carry out a final inspect the works. 

The final inspection is an opportunity for the builder and owner to inspect the building works. There are three possible outcomes of the final inspection:

1. The owner does not attend the final inspection.  

In this case, the builder is not required to complete the defects document and the owner is deemed to have agreed that practical completion has been reached. The builder may issue the Notice of Practical Completion. 

2. The owner attends the final inspection and does not claim that there are any minor defects or omissions.  

In this case, the owner is deemed to agree that practical completion has been reached and the builder can issue the Notice of Practical Completion. 

3. The owner attends the final inspection and claims that the building works have not reached practical completion.  

Within 5 working days of the inspection, the owner must give the builder a written defects list of the works required to be undertaken in order for practical completion to be reached. 

The builder is required to carry out the works as specified by the owner (provided that the defects are not minor and prevent the building works from being reasonably capable of being used for their usual purpose). 

Once the works are completed, the builder must issue a further Notice of Practical Completion within 10 working days and a further site inspection is required. 

What does a defects document include? 

The defects document needs to include the following:

  • a list of all minor defects and minor omissions that the builder and owner agree exist;
  • a statement about when the builder will remedy the minor defects and omissions – which may be after the client has made the final payment and taken possession of the property;
  • a list of minor defects and minor omissions that the owner claims exist but the builder does not agree exist.

This defects document must be signed by the builder.

Can the builder disagree with the defects document?

If your client gives you a defects document, you can either: 

  • complete/rectify those items that the owner has identified as needing to be done and issue another Notice of Practical Completion; or 
  • give the owner a written notice rejecting the owner’s defect list and refer the matter to dispute resolution.

When is the client required to make the Final Payment?

Once the final inspection has occurred, and the owner has agreed (or has been deemed to agree) that practical completion has been reached, the builder must within 10 working days give the owner:

  • a completed and signed Notice of Practical Completion stating the Date of Practical Completion; and 
  • the completed defects document (unless not required due to the owner failing to attend or otherwise does not claim there are any defects). 

If your client pays the final progress claim, the date of practical completion is that stated in your Notice of Practical Completion. 

Defects liability period 

The contract provides an additional 3-month period for the owner to provide the builder a written list of defects. 

Within 20 working days of receiving a written defects list, the builder must fix the defects, at no cost to the owner. 

Handing over possession 

Once the owner makes the final payment, you should give them possession together with all keys, certificates, and warranties. 

If the owner takes possession without your consent or before final payment is made, the owner is in substantial breach of the contract. 

To find out more, contact HIA's Workplace Services team

HIA Workplace Services

Share with your network:

More articles on:

{{ tag.label }} {{ tag.label }} $vuetify.icons.faTimes
Find guides, how-tos, resources and more

Contracts Online 

The industry’s go-to digital platform. 

No matter the size of the job, a watertight building contract is critical to protect your business, and the current climate presents a great opportunity to go digital with your contracts.

Take me there

TAS Residential Building Contract (Pack of 2)

The Tasmanian Domestic Building Contract (pack of two) is tailored to meet state legislation, but is a plain language document so it's easy to underst...

TAS Minor Works Contract (Pad of 25)

The Tasmania Minor Works Contract Pad is suitable for minor residential building works up to a value of $12,000. It’s available in a handy tear-off pa...

TAS Job Quotation Form

The Tasmanian Job Quotation Form is suitable for sub-contractors to list their conditions. It's carbonised and individually numbered and dated.

TAS Kitchen Bathroom & Laundry Supply Install under $20K

The Supply & Install Contract is tailored specifically to the kitchen, bathroom and laundry industry for work under $20,000. The contract allows for a...

TAS Kitchen Bathroom & Laundry Supply Install over $20K

The Supply & Install Contract is tailored specifically to the kitchen, bathroom and laundry industry for work over $20,000. The contract allows for al...

TAS Notice of Commencement - New Homes (Pad of 25)

The Notice of Commencement – New Homes (pad of 25) is used to advise the owner that the builder has started works and what's required under the provis...

TAS Final Inspection Notice (Pad of 25)

TAS Final Inspection Notice (Pad of 25)

TAS Progress Claim Certificate (Pad of 25)

The Tasmanian Progress Claim Certificate (pad of 25) provides an efficient way for a builder to claim payment from a client or financial institution. ...

TAS Specification - General Cover

The Tasmanian General Specification document contains information relevant to the work to be performed by various trades, details of materials, proced...