The practical completion inspection process

The Practical Completion Inspection (PCI) is a very important inspection as it’s a chance for new homeowners to identify any faults and get them fixed before handover. It’s a lot simpler to get them fixed before you move in!

1. The PCI is carried out at a meeting convened between the clients (or their nominated, and duly authorised representative), and the builder’s Site Manager. Typically, the contract calls for five days’ notice to be given, in writing, prior to this meeting.
2. At this meeting a walk around, and through, the residence is carried out and matters which may require attention are noted on the Practical Completion Inspection Sheet (PCIS), a further component of this inspection is an assessment of finished surfaces such as, laminates, glazing, flyscreens etc.
3. Upon completion of the PCI the sheet may be signed by the client as a record of PCI and they are supplied with a copy. If none of the items, mentioned on the PCIS, prevent the residence from being able to be occupied in a reasonably free and uninterrupted manner then the final account becomes due and payable within Ten Days of the PCI. During this period (Ten Days) the Site Manager endeavours to remedy the matters mentioned on the PCI, however, it is not uncommon that some PCI matters are addressed once an owner is in occupation due to the availability of trades and/or materials. Company Policy is for zero hand-over items to be outstanding when Post Construction Warranty (Defects Liability) is undertaken.

4. You will note, on the PCIS, it contains provisions for 1st and 2nd signatures. The 1st signature identifies the PCI has taken place and the 2nd signature confirms the, listed, items have been attended to.

5. If, after the PCI walk around, it is ascertained the residence is not able to be occupied in a reasonably free and uninterrupted manner then the PCI become a Pre-PCI and the Site Manager is obliged to rectify those matters impeding the achievement of Practical Completion and, thus, hand-over. The client should not be asked to sign the PCI if items exist which prevent the residence from being able to be occupied in a reasonably free and uninterrupted manner and the builder is unable to submit the final account until this (PCI) has been achieved.

6. It is a myth that the builder has ten days to complete the PCI items. The ten days apply to when the final account is due for payment from the acknowledgement of PCI. The builder endeavours to complete the items in this period and some clients won’t pay their account for the full ten days which gives the builder unimpeded access. Other clients may pay their account the next day and obtain their keys. This obviously limits the builder’s opportunity to have trades return without access arrangements being made with the clients.

7. Clients who assert they don’t have to pay their final account until the PCI items have been completed are mistaken unless it is an express condition of the contract. The JWH Lump Sum Contract does not contemplate this so it would be in the form of an annexure to the contract if such a clause was applicable.

8. “Reasonably free and uninterrupted manner” can be subjective in interpretation but, say:
   1. Fit balustrade and handrails to internal stairs (PCI not achieved
   2. Fit balustrade to the external balcony (If access door to the balcony can be secured against opening then (PCI achieved)
   3. Patch render to garage (PCI achieved)
   4. Fit wall oven and Hot Water System (PCI not achieved)
   5. Fit spa pump (PCI achieved).