{{ 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 Newsroom
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host an 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 Paperwork gone digital Contracts Online HIA Tradepass HR Docs SafeScan - managing workplace safety Planning and safety services Building and planning services How can HIA Safety help you? Independent site inspections 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 Get your builder's licence Qualifications 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 Australian Housing Awards Awards program National Conference Industry networking Events
HIA products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Products Digital Australian Standards Contracts Online Shipping and delivery Purchasing terms & conditions
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Practical completion of HIA contracts

Practical completion is an important milestone. It determines who is responsible for insuring the works, when you get final payment, when the defects period starts and whether you are liable to pay liquidated (delay) damages.

Definition of practical completion 

‘Practical completion’ means when the building works are complete except for minor omissions and defects that do not prevent the building works from being reasonably capable of being used for their usual purpose. If you are not sure whether any omissions and defects are ‘minor’ or may prevent the works from being used for their usual purpose you should contact your HIA workplace adviser for guidance. 

What happens when you reach practical completion? 

At least five days before you actually reach practical completion you must give your client a notice of practical completion. The notice must: 

  • state what you believe will be the date of practical completion
  • state a date and time to meet your client on site to inspect the building works
  • have attached to it your final progress claim. 

When you meet your client on site to inspect the works, your client must either:

  • pay the final progress claim, or
  • give you written notice stating what he/she believes needs to be completed or rectified before practical completion is reached. 

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

If your client gives you a list of things to be done for the works to reach practical completion you can either: 

  • do those things that your client wants done and then give your client another notice of practical completion

OR

  • give your client a written notice rejecting your client’s claims and referring the matter to dispute resolution. 

What if your client does not pay the final progress claim or give you a notice? 

If this happens:

  • the amount of your final progress claim is treated as a debt owning to you
  • the date of practical completion is the date stated in your notice of practical completion
  • the owner is deemed to acknowledge that practical completion has been reached. 

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

Email us

Share with your network:

More articles on:

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

Business support


 

Supporting building professionals with custom built services and products.

  • Legal support
  • Contracts Online
  • Host an HIA apprentice
  • Insurance services
  • Managing safety

Explore Business support

Building it right topics


 

Can’t find what you need, check out other resources that might be closer to the mark.