Your builder is about to declare Practical Completion. They'll send you a notice, ask you to inspect, and tell you when the final progress payment is due. This is the single moment of leverage you have over the build quality.

Most first-time new-build buyers don't know what a PCI actually is, when to commission it, or what their rights are. The result: they sign off on PC under builder pressure, then spend the next five years chasing rectification work that should have been done before they took possession.

Here's how to do it properly.

What Practical Completion actually means

Under Australian Domestic Building Contracts legislation (Vic DBC Act 1995, NSW Home Building Act 1989, QLD Domestic Building Contracts Act 2000, equivalent in other states), Practical Completion (PC) means the building work is reasonably ready for occupation, with only minor defects remaining.

The PC certificate triggers three things:

Critically: PC does NOT mean "the build is finished and defect-free." It means the builder claims it's ready for occupation. Your job at PCI is to verify that claim — and require rectification of anything that's NOT minor before you accept PC.

When to commission the PCI

The timeline is tight. From your builder's perspective:

  1. Builder declares PC reached — sends you a written notice
  2. Your contract gives you 5–10 business days to inspect (varies by contract)
  3. You either accept PC and pay the final progress payment, OR raise defects in writing and require rectification before accepting
  4. Once you accept PC, the DLP clock starts; the builder must rectify items within the period

Commission your independent PCI inspection within 1–3 days of receiving the PC notice. You want the inspector on site as early in your inspection window as possible so:

What a PCI inspector looks for

A thorough PCI runs AS4349.0 (general inspection of buildings) and sometimes AS4349.1 (pre-purchase) but in a NEW-BUILD context. Unlike pre-purchase inspections, the focus is on workmanship and compliance with the build contract, not natural wear.

External

Internal

Services

Documentation handed over

Don't accept PC without ALL of these documents. Missing paperwork is grounds to refuse PC.

What "minor defect" means (and where builders push)

The legal definition of a minor defect is one that doesn't make the building unfit for use and can be rectified during the DLP without major disruption. In practice, the line gets blurry, and builders often try to classify obvious-major items as "minor" so you accept PC and pay the final.

Genuinely minor (won't block PC):

NOT minor — should be rectified before you accept PC:

If your inspector flags any of the second list, you have legal grounds to refuse PC. Put it in writing to the builder citing the specific contract clause + AS standard. They're required to rectify before PC can be reached.

The Defects Liability Period (DLP)

The DLP is the contractual window AFTER you've accepted PC during which the builder must rectify items you identify. Standard durations:

During the DLP, document EVERY defect you notice in writing to the builder. Photograph each item with the date. Use the contract's defect notification template if there is one. Build a single running list and send updates weekly. The builder typically schedules a single "defects rectification visit" toward the end of the DLP — make sure your list is complete by then.

What happens after the DLP expires?

After the DLP, you can still claim against the builder under statutory warranties — typically:

Specific durations vary by state. But statutory warranties are HARDER to enforce than DLP claims — you have to prove the defect existed at completion, not from later wear. Use the DLP aggressively.

If the builder refuses to rectify

Three escalation paths:

  1. Written notice to the builder citing the contract clause + AS standard breached. Keep tone professional; most builders rectify once the documentation is unambiguous.
  2. Complaint to your state building authority: Victorian Building Authority (VBA), NSW Fair Trading, QBCC (Queensland), Consumer Building Services (WA), Consumer & Business Services (SA). They mediate disputes and can compel rectification.
  3. Claim against Domestic Building Insurance: every licensed AU builder must carry DBI (Vic), HBCF (NSW), or state equivalent. If the builder is insolvent or refuses, you claim against the insurance policy. This is what protected millions of new-build buyers when major builders like Porter Davis went into liquidation.

Typical PCI findings — what to expect

Realistic ranges for a standard 4-bedroom Australian new build at PCI:

Don't panic at the number. A good builder rectifies most items between PC declaration and your final acceptance. The point of PCI is to create the documented list — the builder owes the work under contract regardless.

How Report Decoded helps

Upload your PCI report PDF and Report Decoded:

$59 per report. Same engine, different framing — handover reports use cooperative language (you and the builder are both meant to deliver the house to standard) but with the documentation rigour you need if cooperation breaks down.

The short version

New-build buyers who do PCI properly typically get $40K–$120K of legitimate rectification work done by the builder for free — work that would be expensive owner-funded repairs five years later if skipped today.