Last updated 4 October 2026. Written by the REIN Editorial Team. Researched with the help of AI tools, then fact-checked against the sources below.
Reviewed by Scott Fraser, founder of REIN, licensed real estate agent (NSW) with 10 years on the developer side of house and land.
Quick Answer: What Is a Practical Completion Inspection?
A practical completion inspection (PCI) is the final walk-through of a new home with your builder, before handover and before you make the final payment. You check the work against your contract and plans, and every defect goes onto a written defects list that you and the builder sign. In Queensland, the QBCC says the builder must give you at least five days’ written notice of the inspection, and must fix defects noticed at handover or within 12 months of the work being finished. Bring a licensed building inspector if you can. It’s the cheapest point to get things fixed.
Buying a house and land package as an investor? Get the package checked before you sign, long before handover.
What Is Practical Completion?
The QBCC describes practical completion as “the point where the building works are essentially finished and can be used for their intended purpose”. Small items such as paint touch-ups can still be outstanding. That’s why the defects list matters.
In NSW, the planning portal’s MyHome Planner defines the completion date as the earlier of when the builder hands over possession or when an occupation certificate is issued.
Practical completion usually triggers the final progress payment under your building contract. Once you’ve paid and taken the keys, you have less leverage, so the inspection is your best chance to get work fixed.
What Happens at a PCI Inspection?
- Notice. The builder tells you the home is ready. In Queensland, the QBCC says you get at least five days’ written notice.
- Walk-through. You, or your inspector, walk the home with the builder’s supervisor. The QBCC suggests bringing your contract and plans to check the agreed finishes and fixtures.
- Defects list. Every issue is recorded. The QBCC says the list is usually signed by both parties at the inspection, by hand, on a form or in an inspection app.
- Fixes. The builder fixes listed items within a reasonable time, or the time set in your contract.
- Final payment and handover. You pay the final claim and receive the keys and documents.
Don’t sign anything that says the work is defect-free if it isn’t. Make sure every item you’ve raised is on the list before you sign it, and keep a copy.
Practical Completion Inspection Checklist
Work through the home room by room. Take photos of every issue and note its location.
Inside
- Walls and ceilings: cracks, nail pops, uneven paint, drips and patchy finishes
- Floors: tile lippage (uneven tile edges), cracked tiles, gaps in skirting, scratched or lifting floorboards
- Doors and windows: open and close every one, check locks, alignment and seals, and look for scratched glass
- Cabinetry and benchtops: alignment, chips, scratches, and doors and drawers that close properly
- Wet areas: silicone and grout around showers, baths and basins, and water draining to the floor waste
- Plumbing: run every tap and shower, flush every toilet, and look for leaks and low pressure
- Electrical: test every light, power point, smoke alarm, exhaust fan and appliance
- Inclusions: check every fixture, fitting and appliance matches your contract and selections
Outside
- Roof edges, gutters and downpipes (from the ground)
- Brickwork, render and cladding: cracks, gaps and mortar stains
- Drainage: ground sloping away from the house, and stormwater pits in place
- Driveway, paths, fencing, letterbox, clothesline and landscaping, if they’re in your contract
- External taps, hot water system and air-conditioning units
Documents to ask for
- The signed defects list
- Your state’s completion paperwork. In NSW, that’s the occupation certificate
- Compliance certificates, such as electrical, plumbing and waterproofing
- Appliance warranties and manuals
- Keys, remotes and security codes
- Details of the builder’s defects liability or maintenance period, in writing
Tenants notice finishes straight away, and small defects become maintenance calls. Fixing them before handover costs you nothing.
Should You Get a PCI Inspection by a Licensed Inspector?
For most investors, yes. A licensed building inspector knows the standards and tolerances and checks things most owners can’t, such as waterproofing, roof space and drainage. If you live interstate from your investment property, it may be the only professional set of eyes on the home before you pay.
The QBCC notes you can engage a building inspector to check the work on your behalf, at your own cost, and you can search licensed contractors on its website. Book early, because builders often give only a few days’ notice. Stage inspections earlier in the build can catch problems that are hidden by handover. Our building inspection guide covers what each inspection checks.
What Is the Defects Liability Period?
The defects liability period is the time after completion when the builder must come back and fix defects. It’s separate from, and shorter than, the statutory warranties set by state law.
- Queensland: the QBCC says a contractor must repair any defects noticed at handover or within 12 months of when the work is finished.
- NSW: MyHome Planner says the builder’s own defects and liability period is usually 13 weeks for new homes. Separately, statutory warranties run for 6 years for major defects and 2 years for all other defects.
- Other states: rules differ. Check your contract and your state building regulator.
Keep a running list of anything that appears after you move in or a tenant moves in. Report it to the builder in writing, with photos, well before the period ends.
What If the Builder Won’t Fix Defects?
Put your request in writing and give a reasonable deadline. If the builder doesn’t respond, contact your state building regulator. In Queensland, that’s the QBCC. In NSW, it’s NSW Fair Trading and the Building Commission.
Home warranty insurance has strict time limits. Under the Queensland Home Warranty Scheme, the QBCC says you must become aware of a non-structural defect within 6 months of the work being substantially complete and claim within 7 months. For structural defects, cover runs for 6 years and 6 months, and you must claim within 3 months of becoming aware of the defect. Don’t wait out these windows. If the builder becomes insolvent, read what happens if your builder goes bust, and for a recent example, what happened to Impact Homes and Privium.
Common Defects Found at Handover
- Paint cracking, drips or uneven coverage
- Tile lippage and cracked or drummy tiles
- Misaligned cabinetry and doors
- Scratched windows, benchtops or appliances
- Missing or loose hardware
- Gaps in silicone around wet areas
- Poor drainage or ponding near the slab
Our guide to common building defects explains how to spot and document them.
Common Questions About Practical Completion Inspections
What is a PCI inspection?
PCI stands for practical completion inspection. It’s the final inspection of a new home with the builder before handover, where any defects are recorded on a signed list for the builder to fix.
Is a pre-handover inspection the same as a PCI?
Yes, in most cases. Builders, inspectors and state guides use “pre-handover inspection”, “handover inspection” and “practical completion inspection” for the same final walk-through.
How much notice does a builder have to give for a practical completion inspection?
In Queensland, the QBCC says at least five days’ written notice. Other states and contracts differ, so check yours.
How long is the defects liability period?
In Queensland, the QBCC says defects noticed at handover or within 12 months of completion must be repaired. In NSW, the builder’s own period is usually 13 weeks for new homes, with statutory warranties of 6 years for major defects and 2 years for other defects.
Can I move in before final payment?
In NSW, MyHome Planner warns you’re in breach of contract if you move in before making the final payment, unless the builder gives written consent. Check your contract in other states.
Can someone check my house and land package before I sign?
Yes. REIN reviews house and land packages before you sign and shows you the builder commission built into the price. Book a free review.
Haven’t Signed Yet? Get Your Package Checked First.
Handover is the last checkpoint. The first is the contract. Builder commissions can run into tens of thousands of dollars, and they’re usually built into the price. We’ll show you what’s inside yours before you commit.
GET MY PACKAGE CHECKED or call 1300 446 445.
Sources
- QBCC – Practical completion inspection (accessed 4 October 2026)
- QBCC – Queensland Home Warranty Scheme: time limits for cover and claims (accessed 4 October 2026)
- NSW Planning Portal – MyHome Planner: post-build (accessed 4 October 2026)
Disclaimer: This material is general information only and does not take your personal circumstances into account. It is not financial, legal, or tax advice. Building rules, warranty periods and insurance schemes differ by state and can change, so check with your state building regulator and your contract. While we try to keep content accurate and current, we make no warranties as to accuracy or completeness and accept no liability for any loss arising from reliance, to the fullest extent permitted by law. You should seek your own independent professional advice.