Notice of Practical completion

Hi I am build a new home.

today my builder issued a notice practical completion. It stated handover by 14th December.

The house is no where near completion. First floor balconies are not tiles, baustrades not done, bathroom tiling not complete, bathroom fitting not complete (sink bath tub etc) , doors not painted as per specification(low sheen paint instead of full gloss, carpets not installed. I haven't done the final inspection

the notice says i need to pay the final payment on that day.

Can i please get some advice how to proceed

Regards

 

What does the contract say about practical completion?

 

Before you make the final payment do an inspection and make sure the work is complete

 

The contract is standard HIA contract. Does not clearly defines practical completion. did some reading it is when occupancy certificate can be issues. But still multiple items could be missing and defects but it could be deemed as practically complete
Very confusing
I would feel more comfortable when the keys are handed to me, defects are fixed then i provide them the check
Regards

 

Defects are defects and do not affect practical completion.

You may refer to the fair trading website where the stages for payment are defined (non-OFT contracts must also define these stages). If the contract does not marry up with these stages, the builder can learn a new tune IMHO.

https://www.fairtrading.nsw.gov.au/.../389871/Home_building_contract_over_20000.pdf

Your contract is the HIA version and should be compliant with the requirements of the Home Building Act 1989.

 

It is quite common for builders to issue progress claims and notices of completion 2 weeks in advance of the work actually being completed. This is because they are cash flow sensitive and if they waited until the work was actually done, then they'd have to wait another 2 weeks to get paid.

All the same wait another 11 days until the 14th and see if the works are complete before handing over final payment.

 

A lot of the outstanding items described are sometimes completed only a day or two prior to handover. The reason is that the physical items can be easily stolen from the building site. Just worth keeping this in mind.

That said, I would not make the final payment until everything is properly in place and rectified. A certificate of occupancy often needs to be provided to the bank for them to issue the final payment.

You're not going to get the keys until the final payment has been made.

 

I would not pay until you're happy - same as anyone who is doing work for you. Once you're happy, pay the bill and you'll get the keys. Don't be pressured to pay until you're entirely happy - it's the one card you have up your sleeve to get stuff fixed/completed.

 

PC is when the building is fit to use for the purpose it was built. Completion is when all works required to be carried out under the contract are complete. If you can move in and occupy the place on the 14th, save for minor snag list items or defects this it’s at PC

 

I saw my house 2 days before settlement and laughed again then too. The supervisor assured me it would be completed. It was. It was like an ants nest of workers. Doors got final gloss, place cleaned, fenced, carpet, vacuumed and everything cleaned and landscaping was completed and all fixtures in in those 2 days and on final day blinds and everything else went in. The only thing not done was the AC which was done Sat am the next day...The AC guy met me and assured me and only reason they didnt do it was they had to be sure we live in it to avoid theft. On the Friday I was handed the occ cert and the keys. Arrived back to see the finishing touches.

The 2 weeks is there for the lender to book settlement etc. You still need a final walk through within 2 days or so.