Pre-Handover Defect Inspection Checklist

What is a practical completion (PCI) inspection?

A practical completion inspection, often called a PCI or pre-handover inspection, is an independent check of a new home when the builder says the work is finished. The inspector looks for incomplete work and defects, and records them so the builder can fix them before you take possession and make the final payment.

It is the last of the construction stage inspections, and the one with the most at stake, because it is your best chance to have defects listed before you move in.

When should I book a pre-handover inspection?

Book it as soon as your builder gives you a completion or handover date, and schedule it before handover day. Consumer Affairs Victoria advises inspecting the property thoroughly before you take possession and listing any problems on the handover sheet. It also advises not to make a payment before a stage is complete.

Allow time for the builder to respond to the report before handover. If defects are found, a follow-up inspection can confirm they have been fixed.

Issues raised at handover are often dealt with during the defects liability period set out in your contract.

What should a pre-handover defect checklist include?

It should cover every part of the home: the outside and roof, each room's walls, ceilings and floors, doors and windows, wet areas, the kitchen, services that can be checked visually, and the site around the house. The checklist below is what we work through, trade by trade and room by room, at a practical completion inspection.

Pre-handover checklist:

External walls and cladding: cracking, gaps, damaged bricks or render, flashings, weep holes clear.
Roof and gutters: damaged or loose tiles or sheets, gutter falls, downpipes connected.
Windows and external doors: operation, locks, seals, glazing damage, flashings.
Internal walls and ceilings: plaster finish, cracks, nail pops, cornice joints, paint coverage.
Floors: level, tile lippage and cracked tiles, timber and laminate gaps, skirting fit.
Internal doors and joinery: alignment, gaps, hardware, cupboard doors and drawers.
Bathrooms, ensuites and laundry: falls to waste, silicone and grout, fixtures secure, signs of leaks.
Kitchen: benchtops, splashback, cabinetry alignment, appliance fit.
Services (visual): fittings installed, smoke alarms fitted, hot water unit installed.
Site: drainage away from the house, paths and driveway, fencing if included in the contract.

How is the Guide to Standards and Tolerances used?

The Building and Plumbing Commission's Guide to Standards and Tolerances sets benchmarks for judging whether workmanship is acceptable. The 2026 edition applies to contracts entered into, or work started, from 1 August 2026; earlier jobs use the 2015 edition. Where legislation, the NCC or Australian Standards set a specific requirement, that requirement takes precedence.

The Guide is not legislation or a building contract. The Building and Plumbing Commission says it should be read with the circumstances of the work, the contract documents and any applicable legal requirements.

At handover, an inspector uses it to explain why an item is a defect, so the builder can't simply dismiss it as a matter of taste.

What does my builder have to fix under the contract?

Your builder's obligations come from your building contract and the warranties implied by section 8 of the Domestic Building Contracts Act 1995 (Vic). They include doing the work in a proper and workmanlike manner, using good and suitable materials, complying with the law and finishing on time. An inspection report documents defects; it doesn't compel the builder.

Consumer Affairs Victoria lists the implied warranties, which also require a new home to be suitable for occupation when completed. You can't sign these warranties away.

The report's job is to give you clear, independent evidence of each defect. The contract and the Act are what make the builder responsible for fixing it.

What happens if the builder doesn't fix the defects?

Raise the defects with your builder in writing first. If the dispute isn't resolved, lodge it with Domestic Building Dispute Resolution Victoria (DBDRV), a free government service. Eligible domestic building disputes must go to DBDRV before VCAT, and VCAT will not accept most applications without a DBDRV certificate of conciliation.

The steps:

Builder: send the defect list in writing and keep a copy.
DBDRV: apply online. A conciliator works with both parties, an independent assessor may inspect the work, and DBDRV can issue a binding dispute resolution order.
VCAT: if conciliation doesn't resolve the dispute, DBDRV issues a certificate and you can then apply to VCAT.

An independent inspection report is useful evidence at every step.

Pre-Handover Defect Checklist for New Builds in Victoria

Book a practical completion (PCI) inspection