Handover Procedure | Practical Completion Inspections
1. When the contractual obligations of the builder have been completed,
you will receive a notice of completion and a final payment claim.
A defects list may have been drawn up between client and builder
on a combined walk though.
This is often call Practical Completion Building Inspection.
2. The final payment must be paid within five days of receiving notice of completion.
The final claim is not due until a list of defects and incomplete works is prepared
and signed by both parties as an acknowledgment.
3. The list must state by what date the contractor is to correct each agreed or
minor defect omission.
The contractor must sign the defects document and make all reasonable efforts to
make the home owner sign the document.
Once these items have been completed, written notice must be given, that the agreed
works have been completed.
The final payment is due only once the home is due for habitation and has been completed
in accordance with the contact and all relevant statutory requirements, without any omissions
or defects or with only minor omissions or minor defects.
The contractor must not receive all or part of the completion payment until the home owner has
been given a defects document.
Once payment has been been made the builder will give the client possession together with keys and warranties.
Payment by the client is not an acceptance that there are no defects or incomplete
works and will not waiver any rights under statutory warranties.
4. If either party breeches the contract there is a right to recover damages or exercises any other right or remedy.
Where the contractor and the home owner do not agree on defects.
The defects document must also list any minor defects and omissions which the home owner believes exists,
but that the contractor does not believe exists.
If the contractor cannot resolve these issues through the discussion with the home owner the contractor will
need to contact the BSA for further assistance.
For a New construction.
The home warranty insurance is for six years and three months for structural problems.
Notification must occur within three months of a category 1 defect becoming apparent.
Notification of category 2 defects will need to be made within seven months of the work being completed.
This means that you must notify your builder in writing of any major defects within 3 months of them occurring.
This will then give the builder a chance to assess and rectify the problem.
If you find any category 2 defects you will need to notify your builder in writing and they must be of possession
of such list before the last days of the seven months.
You and your builder must have the same items on the list.
If you have sent your builder a list of defects and you then find more defects, than you must send
him a list of the new defects in writing.
Some owners send the builder the original list with the new items added and dated accordingly.
This keeps everything listed for your property on one list.
Some owners send the builder a new list. The builder will then add this to the clients file.
Either way is fine so long as you both have exactly the same items on your lists.