Practical completion and handover in NSW: what to check

By BuilderVet team. Last reviewed 2 November 2026.

Before you make the final payment, walk through the home with your builder, check everything against your contract and inclusions list, write down and photograph anything missing or defective, and make sure the builder has fixed those items and given you written notice that the work is complete. For a new home, you also need an occupation certificate before you move in.

The completion date matters more than most people realise, because under NSW law it starts the clock on your statutory warranties and your home building compensation cover. This guide explains how completion is defined, what to do at the pre-handover inspection, and what to collect before you hand over the last payment.

What does “completion” mean under NSW law?

The NSW Government’s guide to building contracts says the Home Building Act 1989 has a clear definition. Residential building work is complete when it matches the requirements of the contract.

If there is no contract, or the contract doesn’t define completion, the work is treated as complete when it can be used for its intended purpose and is free of major defects. The earliest of these events can be used to fix that date:

• the date the builder handed over the project to the owner
• the date the contractor last did work, other than fixing minor defects
• the date an occupation certificate was issued
• for an owner-builder, 18 months after the owner-builder permit was issued

For strata buildings, the guide says the completion date is the date of the occupation certificate that allows occupation and use of the whole building.

Your contract may use the phrase “practical completion” and set out its own process for it, such as a notice from the builder and a final inspection. Read that clause before handover so you know what the builder must give you and how long you have to respond.

Why does the completion date matter?

The NSW Government says completion marks the start of the time periods for statutory warranties and for insurance under the home building compensation scheme.

• Statutory warranties. The NSW Planning Portal’s post-build guide says the builder must make sure the work stays free of major defects for 6 years and all other defects for 2 years after completion. See statutory warranties for building work in NSW.
• Home building compensation. icare’s time limits for defect claims also run from completion: 6 years for major defects and 2 years for other defects. See how to make a home building compensation claim.
• Builder’s defects period. The Planning Portal says new home contracts usually have a builder’s defects and liability period, often 13 weeks, but you should confirm the length in your own contract.

Write down the completion date and keep proof of it. You may need it years later.

How do you run a pre-handover inspection?

The Planning Portal says you should complete a final inspection with your builder before handover, and suggests considering a professional building consultant to help. During the inspection you should:

1. Bring your contract and inclusions list, and check the home against them room by room.
2. List anything missing, damaged or incomplete.
3. Take photos of every issue.
4. Agree time frames with the builder for fixing what you find.

It also says your builder must address incomplete or defective items before final handover.

The NSW Government suggests budgeting $250 to $500 per inspection if you use an independent building consultant or architect for progress inspections on a large project. That figure is the government’s guide for progress inspections, so a final inspection quote may differ.

Handover checklist

Work through this list before the final payment.

Inspection

• Every item in the contract and inclusions list is present and working
• Doors, windows, taps, power points, lights and appliances tested
• Wet areas checked for leaks and drainage
• Paint, tiling and finishes checked in good light
• Outside work in the contract checked, such as paths, driveway or fencing
• Defect list written, photographed, dated and sent to the builder in writing
• Builder’s written reply on each item and the agreed fix dates

Documents

• Occupation certificate, for work that needs one
• Builder’s written notice that the work is complete
• Final invoice that matches the contract and any signed variations
• Copies of the contract, all variations, plans and specifications
• Proof of every progress payment you made
• Details of the home building compensation policy for the job
• Warranties and manuals for appliances and fittings

Other

• Utilities connected
• Your own home insurance arranged from handover
• Your lender’s requirements checked, if a loan is funding the build

Why can’t you move in before the final payment?

The Planning Portal warns that you are in breach of contract if you move in before making the final payment, unless you have the builder’s written consent. It also says you must have an occupation certificate before you move into a new home.

If you want to move in while some work continues, the Planning Portal says you can apply for an occupation certificate for the completed part of the building. That is only issued for parts that are safe to occupy, and you are limited to those areas.

When should you make the final payment?

The Planning Portal says you should only make the final payment if your builder has:

• addressed the issues raised in the pre-handover inspection, and
• given you written notice that the work is complete.

If a loan is funding the build, it adds that your lender will usually send a valuer to confirm the work is done, and will tell you which documents it needs, such as the occupation certificate, a copy of your home insurance policy and the builder’s payment claim and invoice. Each lender sets its own process, so check with yours.

More broadly, NSW Government guidance says progress payments should match work actually done, not time spent on the job. The final payment is no different.

What if defects show up after handover?

The Planning Portal says to notify your builder or site supervisor in writing as soon as possible, include photos, and keep a copy. Use a method that proves you sent it, such as email or registered post.

If you can’t agree, icare’s claims guidance says Building Commission NSW offers a free service to help you and your builder work through the issue. If that doesn’t resolve it, you may apply to NCAT. See questions to ask a builder before signing for warranty questions to raise early.

Worked example: a renovation handover

Say you have a $160,000 kitchen and bathroom renovation with no occupation certificate needed, and the contract says completion happens when the builder gives a notice of practical completion.

1. The builder sends the notice. You book a joint inspection for two days later.
2. You find a cracked tile, a leaking shower mixer and a missing pantry shelf from the inclusions list. You photograph each one and email the list that day.
3. The builder replies in writing, fixes the mixer and shelf within a week, and replaces the tile the week after.
4. Only then do you pay the final invoice, which you check against the contract price and the two signed variations.
5. You note the completion date in your records with the builder’s notice, the defect list and the replies.

How BuilderVet helps

Our free check shows the builder’s NSW licence and company status with the date we checked it. Our HBC-by-address check looks for a certificate issued for your NSW address, but it is not proof of cover. For NSW builds, Build Watch (A$79 once) sends change notices for 24 months, which covers the run-up to handover and the months after. See pricing.

Frequently asked questions

When is building work complete in NSW?

When it matches the contract. If the contract doesn’t define completion, it is complete when it can be used for its purpose and is free of major defects, using the earliest of handover, the last day of work, or the occupation certificate.

Why does the completion date matter?

It starts the statutory warranty periods and the time limits for home building compensation claims.

Can I move in before paying the final invoice?

The Planning Portal says you are in breach of contract if you do, unless the builder has given written consent.

Do I need an occupation certificate before moving in?

For a new home, yes. The Planning Portal says you must be issued one before you can move in.

Should I pay the final payment if there are defects?

The Planning Portal says to pay only once the builder has addressed the issues from the pre-handover inspection and given written notice that the work is complete.

How long is the defects and liability period?

The Planning Portal says it is usually 13 weeks for new homes. Check your contract for the exact period.

What if I find a defect after handover?

Tell the builder in writing with photos as soon as possible and keep a copy. If you can’t agree, Building Commission NSW offers free help.

Sources

• NSW Government, Contracts for residential building work, https://www.nsw.gov.au/housing-and-construction/building-or-renovating-a-home/preparing/contracts (checked 2026-11-02)
• NSW Planning Portal, MyHome Planner: Post-build, https://www.planningportal.nsw.gov.au/myhome-planner/build-phases/post-build (checked 2026-11-02)
• icare, HBCF: Am I ready to make a claim?, https://www.icare.nsw.gov.au/builders-and-homeowners/homeowners/hbcf-am-i-ready-to-make-a-claim (checked 2026-11-02)
• icare, HBCF: What am I covered for?, https://www.icare.nsw.gov.au/builders-and-homeowners/homeowners/hbcf-what-am-i-covered-for (checked 2026-11-02)

Last reviewed 2 Nov 2026