If you are building a new home in WA arguably one of the most critical inspections along the construction journey is the Practical Completion Inspection.
1 What are We Talking About?
Once the builder has reached practical completion – i.e. they have completed all construction work and just finalising minor items, they will generally want to conduct a practical completion inspection (PCI) with you. This is a critically important time for you and your builder so that you can collectively review the construction work ahead of the handover inspection where control of the property will be returned to you.
As a general rule, the Practical Completion Inspection will be conducted circa 2 weeks prior to the handover inspection. This timing will enable the builder to address any construction issues identified during the PCI, ahead of the handover to you.
Ideally you would have had independent building inspections conducted at all of the previous key inspection stages, as the PCI is a final inspection of all of the key construction items, with a focus on final finishes on all construction items.
2 When Do We Do the Practical Completion Inspection?
The PCI should only be conducted when both you and the builder agree that:
- The construction has been completed in accordance with the plans and contractual obligations, except for any defects which may be identified during the PCI
- There are no outstanding substantive works to be undertaken
- The property is suitable to be inhabited
- All of the services (water, power, sewage) have been connected and are functional
- The property has been cleaned and is in the standard that the builder proposes to hand over control of the property to you
Unless all of the above has been achieved, you should not agree to undertake a PCI with your Builder as the property is simply not ready to be inspected.
It is important to acknowledge that there can be significant and conflicting pressures in the lead up to the PCI inspection. The Builder will be looking to secure the final payment and move onto the next project. Owners may be looking to exit rental accommodation ahead of moving into their new home. These pressures can result in a push to conduct a PCI prior to the property being ready. When this occurs it can impact claims against the builder and undermine the value of undertaking an independent PCI.
3 What is Done During the PCI
Essentially you want to review every square metre of the home to determine if there are any construction defects, omissions or blemishes to the final finishes. Ideally, you need to reconcile that the construction work is consistent with the Contract, agreed plans, addenda, Building Code of Australian and Australian Standards. Yes, it’s a lot of work but it is the key reconciliation of what you contracted the builder to deliver to you.
It is important to understand that a considerable amount of the construction work will no longer be visible at the PCI as it will have been covered by subsequent construction stages. For example, internal brickwork is likely to be covered by render, plaster, tiles or cladding which highlights the importance of staged inspections throughout the entire construction process and not just a single inspection at practical completion.
Generally your Houspect Building Inspector will leave you and your builder to work your way through the home to inspect the construction. Our Inspector has a very detailed list of items that they need to inspect and are best left to their own devices. It is highly recommended that you create your own list of inspection items to check during the inspection. Your check list may include items you have discussed with the Builder that may not be included in plans (eg. downlight or towel rail positions) and checking of your final product/colours and equipment selections against the addenda or similar. Once everybody has completed their inspections a quick meeting to discuss major findings can be helpful. On occasions our clients and their builder will complete their inspection well before our inspectors and hence the inspectors are often left to complete their inspection on their own.
To conduct the Practical Completion Inspection we will need a copy of the approved and final Construction Plans and Engineers Plans if these have not already been provided.
The outcome of a Houspect Practical Completion Inspection is a detailed report with photos which articulate all of our findings. In short, the report aims to identify items that the builder must address prior to handover.
Our PCI reports are provided to our clients to enable them to review and consider prior to passing on to their builder for remediation work to be undertaken.
4 Why is it Important?
Generally, the Practical Completion Inspection is the last major opportunity you will have to raise construction issues with the builder prior to you taking back control of the property. There are some important considerations.
Firstly for some construction defects, it can be challenging to remediate these items while you are actually living in the property. For example, if the tiles have to be replaced in the bathroom, living in the house during this work can be a challenge as you will not have access to the bathroom. Hence, it is important to identify significant items prior to taking back control of the property.
Secondly, you want to avoid any construction issues or damage which can be attributed to occupancy. For example, if a window or door is damage it is important that this is clearly recorded during the PCI so that if you do take control of the property prior to the issue being remediated, there can be no question that the issue existed prior to handover and has not been caused by your occupancy of the property.
Finally, the PCI is conducted just prior to the final payment becoming due. Hence, it is important that there is agreement between you and your builder that the contractual obligation in accordance with your contract have been fulfilled prior to making that final payment.
It is important to note however, that post-handover the Builder will have a maintenance period during which the builder will return to the property and address defects and issues which are subsequently identified or can be identified. How Builders respond to these issues will generally vary between builders. Secondly, in WA, Builders have a statutory warranty period of up to 6 years post practical completion to address construction defects.
5 So What is the Issue?
PCI’s require a significant volume of construction items to be reviewed in a relatively short time. Building inspectors with a minimum of 20 years’ experience bring considerable skills and expertise to a PCI and simply look at new constructions through a different lens.
The following are recent examples that we found during PCI inspections in WA over the past few months in 2017.
5.1 The flashing to the top of the parapet wall above the rear right corner of the alfresco is rough and uneven and there are multiple areas that are unsealed.
5.2 There are multiple areas where the sarking is sticking out from underneath the roof tiles requiring cutting back.
5.3 There were no visible weepholes over some of the openings. Weepholes are required for any opening (windows or doors) wider than 1 meter where there is no roof overhang or the roof overhang is not three times the distance between the top of the opening and the bottom of the roof.
5.4 There are no collar ties between common rafters to the roof over the upper level front section of the house as required by Australian Standards. The structural engineer responsible for the house should comment in writing whether this is acceptable.
5.5 There is a ceiling exhaust fan in the upper level front section of the house that is not connected to a roof vent / flume as required.
5.6 Bracket fixings are required to the top and bottom of roof struts to underpurlin, plate and beam connections as per engineer’s specification.
5.7 Northern rendered window sill is sloping towards the frame and can cause water ingress into the cavity.
5.8 The left side basin is not square to the benchtop and silicone is poorly sealed.
5.9 The living air conditioning outlet is not square to the room. This outlet is not positioned as agreed by the client.
5.10 Air-conditioning ducts in the roof space are sitting on the ceiling and are not suspended to comply with the Australian Standard AS.4254.1
5.11 The finish to the white set render to the walls is rough and uneven. These defects would not be expected to be rectified by the painter as part of their painting preparation work. The white set render is faulty and unsatisfactory in accordance with good trade practice.
5.12 Top of door frames need to be painted.
5.13 The hot and cold pipes have been incorrectly identified under the kitchen sink resulting in cold water when hot is selected and the dishwasher stop tap fitted to the hot water supply.
5.14 Repositioning of insulation is required as it has been removed and not correctly cut in around downlights and ceiling exhaust fans to both levels.
6 What is the Immediate Solution for People Building a New Home?
The simple solution is to conduct your Practical Completion Inspection with the support of a Houspect Building Inspector. Armed with the approved Construction Plans, Engineers Plans, a good knowledge of the Building Code of Australia, the Australian Standards and many years of experience, your Houspect Building Inspector can review the work undertaken on your new home so that you can be assured that the overall construction has been completed in accordance with the Builders obligations.
7 What Happens if Your Builder will Not Respond to Construction Defects?
This should be a rare experience. Quality WA Builders are in business to deliver quality product to their clients, those that don’t, simply do not last in business. Our experience is that when a Builder is provided with a written report identifying construction items which are inconsistent with the Contract, Plans, Building Code or Australian Standards they will move to remediate as quickly as possible. There will on occasions be “grey” areas, but in the main these will represent a minority of construction items.
In the rare event that a Builder does not address construction defects in WA, there are a number of avenues that home owners can take to have the issues resolved. Houspect WA is able to support home owners by providing independent expert reports to support matters through Mediation, the WA Building Commission, State Administrative Tribunal and or WA Magistrate Court. While all of these options should be considered the absolute last resort, it is important that you know that your Building Inspector can support you through to the natural conclusion if required.
8 Summary
- The Practical Completion Inspection should be conducted with your Builder and your Building Inspector circa 2 weeks prior to the proposed handover of the home to you.
- The PCI should only be conducted when both you and the builder agree that:
- The construction has been completed in accordance with the plans and contractual obligations, except for any defects which may be identified during the PCI
- There are no outstanding substantive works to be undertaken
- The property is suitable to be inhabited
- All of the services (water, power, sewage) have been connected and are functional
- The property has been cleaned and is in the standard that the builder proposes to hand over control of the property to you
- You should aim to undertake a thorough inspection of the entire property during a Practical Completion Inspection. Your Building Inspector can provide you with significant assistance during this process.
- Generally, the Practical Completion Inspection is the last major opportunity you will have to raise construction issues with the builder prior to you taking back control of the property. There are some important considerations.
- It is not unusual to find a number of items during the Practical Completion Inspection. These items should be able to be resolved by the Builder prior to the handover inspection.
- The builder has obligations to remediate construction defects post-handover during the maintenance period and the statutory defects liability period.
- If required, your Houspect WA Building Inspectors can assist you manage defect remediation with your Builder.
PCI’s are an important part of your construction journey. Houspect WA conducts a large number of construction inspections every week, including PCI’s. Our Building Inspectors, all of whom are independently registered WA Builders with a minimum of 20 years’ experience, can provide you with significant support during the important Practical Completion Inspection process and beyond.
Build, Buy, Invest in property with confidence.
Ph 9240 8855 Web: www.houspect.com.au/wa Email: enquiry@houspectwa.com.au