Address
{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location Address
{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationMember and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
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.
Thursday, 15th April 2021
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
Share with your network:
More articles on:
Find the latest expert advice, guides and much more!
Was this page helpful?
Thank you for submitting your feedback.
Managing your business
Can’t find what you need, check out other resources that might be closer to the mark.
Contract Works Insurance
Get a quote to make sure you're covered.
HIA Insurance offers public & products liability and material damage cover for:
- builders
- tradies
- subcontractors.
You might also like
NSW Authority for Final Payment (Pad of 50)
The NSW Authority for Final Payment Pad offers an effective method of claiming final payment from your client. It’s available in a handy tear-off pad of 50. This is a hard copy document and will be mailed to you once it's purchase...
Non-member price $ 79
Member price $39.5
NSW Claim for Extension of Time (Pad of 50)
This form is to notify the owner of an entitlement to an extension of time when building works have been delayed due to unforeseen circumstances, an owner’s delay or requests for additional work. If you do not notify an owner abou...
Non-member price $ 79
Member price $39.5
NSW Authority for Variation to Contract (Pad of 25)
The Authority for Variation to Contract (pad of 25) details changes or variations to works requiring an update to the contract between builder and owner. It can also be used for variations between builder and sub-contractor. This...
Non-member price $ 79
Member price $39.5
NSW New Dwellings Contract (Pack of 2)
Ideal for building professionals about to work on a new dwelling, available as a pack of two. The fixed price contract allows for all job details to be formalised and provides schedules for progress payments, excluded items, insur...
Non-member price $ 100
Member price $50
NSW Cost Plus Contract (Pack of 2)
This contract is used for residential construction works on a cost plus basis, not a lump sum ‘fixed price’. Costs are totalled and a percentage or fixed sum added for administration, supervision and profit. It allows for project ...
Non-member price $ 100
Member price $50
NSW General Housing Specifications
The NSW General Housing Specifications document forms part of the contract documents which is referred to in the building contract. It details the works to be executed and the materials to be used in carrying out those works at th...
Non-member price $ 45
Member price $22.5
NSW Preliminary Agreement (Pad of 50)
This Preliminary Agreement (pad of 50) is used to cover the cost of the preliminary work before and in preparation of signing the contract. This type of work may include: - preparation of plans - engineering details - obtaining a...
Non-member price $ 79
Member price $39.5
NSW Notice of Practical Completion (Pad of 25)
The NSW Notice of Practical Completion is used to notify an owner when a project will be at practical completion, available as a pad of 50. It sets a time and date for the owner's inspection of the works as part of the handover an...
Non-member price $ 79
Member price $39.5
NSW Small Works between $5K & $20K Contract (Pad of 10)
This contract is a fixed-sum contract used for non-structural, residential renovations and additions, available in a pad of 10 duplicate contracts. It’s suitable for use in the manufacture, supply and installation of: - cabinets a...
Non-member price $ 79
Member price $39.5
NSW Residential Contract for Renovations & Additions (Pack of 2)
NSW Residential Building Contract - Renovations/Additions
Non-member price $ 100
Member price $50
NSW Small Works over $20K Contract (Duplicate)
The NSW Small Works over $20,000 contract (in duplicate) is for residential construction work over $20,000 and complies with the NSW Home Building Act. It's suitable for smaller alteration and renovation projects. This is a hard c...
Non-member price $ 45
Member price $22.5