What practical completion means for your new home in Queensland, and what to do before you sign
Summary
Practical completion is the day your builder says the house is finished apart from minor items, and it sets off most of what follows: the final walk-through, the defects document, the last progress payment, the keys and the clock on your defects period. I'm Ryan Mair, a QBCC licensed builder and building inspector (Xpanded Concepts licence 15463341) with over 28 years in the building industry, based on the Sunshine Coast. This guide explains what practical completion means under Queensland law and the QBCC's own contract, which documents you should receive and who signs each one, what to check on the walk-through, and what happens if you find a defect after you move in. It is general information only, not legal advice. Check your building contract and speak to a solicitor about your situation.
On this page
What practical completion means in Queensland: finished, apart from minor defects
The Queensland Building and Construction Commission (QBCC) describes practical completion as the point where the building works are essentially finished and can be used for their intended purpose. Legally, the QBCC says, it means the contractor has fulfilled its obligations under the contract except for minor defects, which are often listed in a defects list. The law sets the bar more precisely. Schedule 1B of the Queensland Building and Construction Commission Act 1991 defines practical completion, for a domestic building contract, as the day the work is completed in compliance with the contract, including all plans and specifications and all statutory requirements; without any defects or omissions other than minor defects or minor omissions that will not unreasonably affect occupation; and, if the owner claims there are minor defects or omissions, once the builder gives the owner a defects document for them. So the defects document is part of the definition, not an optional extra. The QBCC adds that a home handed over must be suitable for occupation: it functions as a normal home, has power and water, and is weatherproof. The QBCC contract's own notes tell owners to check whether their contract imposes extra requirements on the builder for practical completion, so read your contract's practical completion clause alongside this.
Practical completion, handover and final certification are three different things
Practical completion is a stage in your building contract, handover is when you get the keys, and final certification is the sign-off of the building approval. The QBCC says handover usually happens after practical completion, once the major work is done and any agreed minor defects have been listed with a plan in place to fix them. At handover the home can still have outstanding items, such as painting touch-ups, but must not include any major defects, and you receive the keys and important documentation. Certification runs on a separate track. According to the QBCC, a practical completion certificate is not a mandatory regulatory requirement but may be issued under your building contract: it signifies the building is substantially complete, but does not address regulatory compliance or suitability to occupy. For a detached house, the document showing satisfactory completion of the building work and compliance with the building approval is the final inspection certificate (Form 21), which is typically provided to the owner and lodged with local government. For multi-storey apartments and townhouses, the QBCC points to a certificate of occupancy (Form 11). The table at the end of this guide sets out each document, who it comes from and when.
From your builder's notice to the keys: the timeline under a standard contract
The QBCC says your builder will notify you when the project is reaching practical completion, generally at least two to three weeks out, and give at least five days' written notice. The QBCC New Home Construction Contract (version 3, effective from July 2023) shows how the steps fit together. Builders can also use a contract developed by an industry association or their own contract, and the clauses differ, so check yours. Under general condition 28 of the QBCC contract, the builder gives you 5 business days' prior written notice of the date it expects to reach practical completion, then written notice when it considers that stage reached. You or your representative inspect the work with the builder on the date in that notice, or within 2 business days after it, at an agreed time. If you are satisfied, and the builder produces written evidence that the required inspections and approvals are complete, the builder signs a defects document (QBCC Form 6), gives you a signed certificate of practical completion (QBCC Form 7), and hands over the home in exchange for the practical completion progress payment. If you reasonably consider the work has not reached practical completion, you give the builder written notice of what still needs to be done. The same contract tells owners to arrange home and contents insurance from the date of practical completion rather than waiting for handover, and to make sure the lender has the final payment ready.
The defects document: agreed items, disputed items and a date for each
The defects document is the paper that protects you at practical completion. Under Schedule 1B of the QBCC Act it lists the minor defects and minor omissions that you and the builder agree exist, states when the builder is to remedy them, and lists the minor defects and minor omissions you say exist that the builder does not agree exist. That last list matters: an item the builder disputes still belongs on the document, as a non-agreed item, rather than being left off. The QBCC says defects, incomplete work and items not built to specification are documented in a defects list that is usually signed by both parties at the inspection, and gives examples such as paint touch-ups, misaligned cabinetry, missing fittings and scratched surfaces. The list can be handwritten on site, typed into a form or template the builder provides, or logged through an inspection app on some large projects. Whatever the format, write each item so someone else could find it: the room, the exact spot, what is wrong, and a photo. Under general condition 28.7 of the QBCC contract, the builder must fix the agreed items by the time stated in the document, provided you give reasonable access to the site. Keep your signed copy with your contract.
Your walk-through checklist, room by room
Take your contract, plans and selections with you; the QBCC suggests bringing a copy of your contract and plans so you can refer to agreed finishes and fixtures. Then work through the house in the same order every time. In each room, check that finishes, colours and fittings match the plans and your selections, and look along walls, ceilings and floors for scratches, chips, paint runs and gaps. Open, close and lock every door and window, including screens and the garage door, and collect the keys and remotes. In the kitchen, check benchtops, cabinet alignment, drawers and doors, and that every appliance in the contract is there. In the bathrooms, laundry and toilets, run every tap and shower, flush every toilet, and check tiles, grout and silicone; for the damp and musty signs that matter later, see mould in walls and what causes it. Switch every light and fan and try power points you can reach with a phone charger, but leave the switchboard and covers closed: the Electrical Safety Office says to always get a licensed electrician to do any electrical work. Outside, check paths, driveway, fences, gutters and downpipes, and look for water lying against the slab after rain. Photograph every item you note. The QBCC says you can engage a building inspector to check the building work on your behalf, at your own cost; if you want that on the Sunshine Coast, read about an independent new home handover inspection.
What a walk-through from the floor cannot tell you, and the paperwork that covers it
A walk-through checks what you can see and touch, and some parts of a new home cannot be judged that way: the roof space, the waterproofing under wet-area tiles, flashings, and how the site drains in heavy rain. For those, ask for the paperwork. The QBCC says a waterproofing certificate (Form 43 or Form 12, depending on the circumstances) is required for wet areas once waterproofing work exceeds a set value, and must be carried out and issued by a licensed contractor. It also says to make sure you receive appliance warranties, product manuals, water or sewage notices, energy ratings, and certificates for electrical, plumbing and gas work before handover. If an inspection certificate is missing, you can submit a Form 35 owner request for a copy of inspection documentation, and the building certifier needs to provide it within five business days. It also helps to know the yardstick: when the QBCC assesses whether work is defective, its building inspector considers the National Construction Code, Australian Standards, manufacturers' guidelines and the QBCC's standards and tolerances guide. If you would like an inspector to look at the agreed internal and external areas before handover, book a handover inspection on the Sunshine Coast. Findings are recorded with photographs and descriptions, with limitations identified in the report, and the inspection is not a substitute for statutory certification.
After handover: 12 months for defects, 6 years for structural defects
After handover your protection comes from three places, and their time limits differ. First, the contract. The QBCC says a contractor must repair any defects noticed at handover or within 12 months of when the work is finished, and the owner must notify the contractor within 12 months of noticing them. Under general condition 29 of the QBCC New Home Construction Contract, the builder must make good defects that become apparent within 12 months of the date of practical completion; you give written notice as soon as practicable, and, subject to reasonable access, the builder must rectify within 20 business days unless there are reasonable reasons the defects cannot be fixed in that time, in which case within an agreed or reasonable time. Second, the statutory warranties in Schedule 1B of the QBCC Act, which the QBCC contract notes are part of all regulated domestic building contracts even if not stated in the contract. The warranty period is 6 years for a breach that results in a structural defect and 1 year in any other case, starting on completion of the work, and proceedings can be started within a further 6 months if the breach becomes apparent in the last 6 months of the period. Third, the Queensland Home Warranty Scheme. The QBCC says structural defects are generally covered for 6 years and 6 months from the date of contract, or 7 years where the build takes more than 6 months. Its time limits page counts that cover from the earliest of paying the premium, entering into the contract or work starting, and says a structural defect claim must be made within 3 months after you first become aware of the defect. Non-structural defects must be noticed within 6 months of completion and claimed within 7 months. Write these dates in your diary at handover.
If you and your builder disagree about a defect: put it in writing first
Start with the builder, in writing, and keep records. The QBCC expects you to have raised the issue with your licensed contractor and given them the chance to fix it before you lodge a complaint: give written notice of every defective or unfinished item, by email or post, with a timeframe such as 14 days, and keep a copy. If there is no action or no satisfactory response, you can lodge a complaint with the QBCC, with clear photographs of the work. An assessment officer contacts both parties to try to resolve it and may allocate the case to a building inspector. If the inspector finds a defect, the QBCC can issue a Direction to Rectify, and the contractor usually has 35 days to comply. Under section 71J of the QBCC Act, a request for a direction to rectify must be made within 12 months after you become aware of the defective or incomplete work. Three limits are worth knowing. The QBCC may decline to issue a direction where that would be unfair, for example where money has been withheld from the contractor or the owner has not let the contractor back to fix the defect. The QBCC does not generally get involved in contractual matters such as payments, variations and delays, and the home warranty scheme does not cover items like roof tiles in the wrong colour or a different door to the one agreed. And time limits for insurance claims can be as early as 3 months from when the contract ends or you notice a defect. For advice on your contract, speak to a solicitor; the QBCC contract warns that incorrect termination may have serious legal and financial consequences.
| Document | Who it comes from | When | What it does |
|---|---|---|---|
| Notice of practical completion | Your builder, in writing | At least five days ahead, per the QBCC (5 business days under general condition 28.1) | Tells you the date the builder expects to reach practical completion, so you can plan the walk-through |
| Defects document (QBCC Form 6 or similar) | Your builder completes and signs it; the QBCC says the list is usually signed by both parties | At the practical completion walk-through | Lists agreed and non-agreed minor defects and omissions, and when the builder will fix the agreed ones |
| Certificate of practical completion (QBCC Form 7) | Your builder, under your building contract | At practical completion | States the date of practical completion; not a mandatory regulatory requirement and does not address compliance or suitability to occupy |
| Final inspection certificate (Form 21) | The building certification process; under the QBCC contract the builder gives you copies of any remaining inspection certificates, including the final one where applicable | At the end of the build, for detached houses and smaller structures | Shows satisfactory completion and compliance with the building approval; typically provided to the owner and lodged with local government |
| Certificate of occupancy (Form 11) | The building certification process | At the end of the build, for multi-storey apartments and townhouses | Indicates the building is fit for occupation |
| Waterproofing certificate (Form 43 or Form 12) | The licensed contractor who did the waterproofing | When waterproofing work exceeds the QBCC's set value | Confirms wet-area waterproofing complies with building standards |
| Electrical, plumbing and gas certificates, warranties and manuals | Your builder, from the trades and suppliers | Before handover | Records the trade work and covers appliances; appliance faults after handover go to the product supplier |
Scroll sideways to see the whole table
Frequently asked questions
What is practical completion?
Practical completion is the point where building work is essentially finished and the home can be used for its intended purpose, according to the QBCC. Under Schedule 1B of the QBCC Act, it is the day the work is completed in line with the contract, plans, specifications and statutory requirements, with no defects or omissions other than minor ones that will not unreasonably affect occupation. If you claim minor defects exist, the builder must also give you a defects document.
How long does the practical completion stage take?
It depends on your contract, which must state the date for practical completion or how it is worked out, for example 180 days from commencement, according to the QBCC contract notes. The final steps move quickly. The QBCC says builders generally notify owners two to three weeks out and give at least five days' written notice, and under the QBCC New Home Construction Contract the walk-through happens on the notified date or within 2 business days after it.
What is the difference between handover and practical completion?
Practical completion is the contract stage when the work is finished apart from minor defects and omissions, recorded in a defects document. Handover is when the builder officially hands the home to you and you get the keys and documentation. The QBCC says handover usually happens after practical completion, once agreed minor defects are listed with a plan to fix them. Under the QBCC New Home Construction Contract, handover follows payment of the practical completion progress claim.
What counts as a minor defect at practical completion?
The QBCC Act does not list them, but its definition of practical completion only allows minor defects or minor omissions that will not unreasonably affect occupation. The QBCC gives examples such as paint touch-ups, misaligned cabinetry, missing fittings and scratched surfaces. At handover a home can have outstanding items like these but must not include any major defects, and it must be suitable for occupation, with power, water and weatherproofing. Your contract may say more, so check it.
How long is a builder responsible for defects in Queensland?
For most defects, 12 months: the QBCC says a contractor must repair defects noticed at handover or within 12 months of the work finishing. The statutory warranty period in the QBCC Act is 6 years for a breach that results in a structural defect and 1 year in any other case, from completion. Home warranty insurance generally covers structural defects for 6 years and 6 months from the date of contract. This is general information, so check your contract.
Do builders have to comply with Australian standards?
Builders must carry out domestic building work in accordance with all relevant laws and legal requirements, including the Building Act 1975. Schedule 1B of the QBCC Act makes that a warranty in every regulated contract, along with doing the work in an appropriate and skilful way. When the QBCC assesses whether work is defective, its building inspector considers the National Construction Code, Australian Standards, manufacturers' guidelines and the QBCC's standards and tolerances guide.
Is there a 7-year rule for building work in Queensland?
Seven years does appear in the Queensland Home Warranty Scheme. The QBCC says home warranty insurance generally covers structural defects for 6 years and 6 months from the date of contract, increasing to 7 years where the build takes more than 6 months. Separately, the statutory warranty period in the QBCC Act is 6 years for structural defects and 1 year for other breaches. Ask a solicitor how these apply to your build.
Can I bring my own building inspector to the practical completion inspection on the Sunshine Coast?
Yes. The QBCC says you can engage a building inspector to check the building work on your behalf, at your own cost, and suggests finding a licensed inspector through its find a local contractor search. Under the QBCC New Home Construction Contract the walk-through is done by the owner or the owner's representative with the builder, so check your contract and tell your builder who is attending. On the Sunshine Coast, call me on 0401 527 667 to talk about your handover date.
Sources
Each source was checked on the date shown.
- Practical completion inspection, Queensland Building and Construction Commission
- Handover and final documentation, Queensland Building and Construction Commission
- New Home Construction Contract, general conditions and owner notes (version 3, July 2023), Queensland Building and Construction Commission
- Queensland Building and Construction Commission Act 1991, Schedule 1B and section 71J, current as at 1 February 2026