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The defect period: what to inspect and when

Practical completion is not the end. What to look for at handover, what the defect liability period covers, and how to raise something so it actually gets fixed.

2 min read · Published 7 October 2026

The short version

  • Practical completion means the home is finished apart from minor items. It is the start of your checks, not the end of them.
  • Inspect before the final payment, list everything in writing, and inspect again before the defect period ends.
  • Longer statutory warranties sit behind the defect period, and they differ by state.

The stages at the end of a build

  • Practical completion inspection. You, or an independent inspector acting for you, walk through the home with the builder before handover.
  • Final payment and handover of the keys.
  • Defects liability period. A set time after handover in which the builder returns to fix defects you report. It is commonly around three months in standard contracts, and some run longer. Your contract states it.
  • Statutory warranties. Protections set by state law that last for years and cover more serious defects.

What to inspect at practical completion

  • Outside: roof and gutters, brickwork and render, driveway and paths, drainage falling away from the house, fencing, gates and taps.
  • Wet areas: run every tap and shower, watch how quickly the water drains, and check silicone, grout, exhaust fans and the cupboards under each basin.
  • Doors and windows: open and close every one, test the locks, and check flyscreens and glass.
  • Surfaces: paint, plaster joins, floor coverings, benchtops and the alignment of cabinet doors.
  • Services: every light and power point, heating and cooling, hot water, oven, cooktop, rangehood, dishwasher, smoke alarms and the garage door.
  • Inclusions: confirm that each item on the contract list is present. See what turnkey actually includes.

How to raise something so it gets fixed

  1. Put it in writing, in one numbered list, with a photo and the location of each item.
  2. Send it to the builder's nominated contact, not to a tradesperson on site.
  3. Ask for a date against each item.
  4. Keep a copy of everything you send and receive.
  5. Sign an item off only when you have seen that it is fixed.

During the defect period

Some problems only appear once a home has been lived in and has been through some weather: a door that sticks, a hairline crack, a leak in heavy rain. Ask your property manager to inspect a few weeks before the period ends and send you a list, so that everything is reported in time. For an investor who lives in another state, this is the step most often missed.

After the period ends

You are not without cover. Each state sets statutory warranties for residential building work, and most require builders to hold insurance for it. The time limits and the definition of a major defect differ by state, so check with the building regulator where the property is located, or with your solicitor.

What we do

We stay across the builder relationship from the contract through to the defect inspection before handover, and we keep the list moving until it is closed.

General information only. It does not take your objectives, financial situation or needs into account, and it is not financial, credit, legal or tax advice. Citadel Developments operates in conjunction with Citadel Agency under real estate licence 092247L and does not hold an Australian Credit Licence. Figures in this article are illustrations, not quotes or forecasts. Laws and lender policies change, so confirm the current position with a licensed professional before you act on anything here.

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