Browse Forums Building A New House 1 Nov 18, 2021 1:16 pm Our contract does not mention practical completion but rather uses the term “completion” for the purposes of liquidated damages and when final payment is due. Keen to understand from others what the definition of “completion” is - is it when occupancy permit is obtained or when items/defects from the “final inspection” are fixed ready for handover? Re: Definition of “completion” of build 2Nov 18, 2021 2:46 pm Completion is when the Building is ready for handover. Practical Completion is just a step to ensure defects are identified and hopefully fixed before handover. Occupancy Permit is still a way off completion. I would say its the minimum standard if you were going to move into a partially completed house and finish it off yourself. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Definition of “completion” of build 3Nov 18, 2021 3:06 pm Thanks bashworth. Is it common for builders to try and argue that it’s when the occupancy permit was issued to get out of paying additional amounts delayed builds? Keen to hear any personal experiences of delayed builds - did your builder pay for liquidated damages up until the time your house was ready for handover? Re: Definition of “completion” of build 4Nov 18, 2021 3:11 pm Building2021 Thanks bashworth. Is it common for builders to try and argue that it’s when the occupancy permit was issued to get out of paying additional amounts delayed builds? Keen to hear any personal experiences of delayed builds - did your builder pay for liquidated damages up until the time your house was ready for handover? Builders will often try and bluff about anything and everything. Last time I built I warned them that I was experienced in construction but they still tried it on twice on various aspects of the build. When I sent a formal letter they backed off. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Definition of “completion” of build 6Nov 18, 2021 8:57 pm No experience of that. Normally it has taken no more than a couple of weeks before you can move. There is normally a clause for them to make repairs after you move, but I have never needed that. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Definition of “completion” of build 7Nov 19, 2021 8:37 am Building2021 Our contract does not mention practical completion but rather uses the term “completion” for the purposes of liquidated damages and when final payment is due. Keen to understand from others what the definition of “completion” is - is it when occupancy permit is obtained or when items/defects from the “final inspection” are fixed ready for handover? Hi Building2021 Your contract should include a definition for practical completion, but usually it is interpreted as the stage when the building works are finished except for minor omissions and defects that do not prevent the building being used for it's intended purpose. There are some really good NSW supreme court cases on this, one where the superintendent of the contract instructed the builder that practical completion was when the lockup was complete and the judge ruled that this was incorrect as the buildings could not be used for their intended purpose as the internal works weren't completed. Hope this helps Simeon Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Re: Definition of “completion” of build 8Nov 20, 2021 8:12 pm Thanks @Ashington Homes. Yes makes sense that lock up is a little early to claim ‘completion’. I thought there would be many others experiencing similar issues from final inspection to handover timings but apparently not?! Likely to be the case for builders who claim completion too early and have lots of items to fix/finish off for handover hence go well over the 21 days. Not sure there’s much we can do about toy?! . Re: Definition of “completion” of build 9Nov 20, 2021 8:12 pm Thanks @Ashington Homes. Yes makes sense that lock up is a little early to claim ‘completion’. I thought there would be many others experiencing similar issues from final inspection to handover timings but apparently not?! Likely to be the case for builders who claim completion too early and have lots of items to fix/finish off for handover hence go well over the 21 days. Not sure there’s much we can do about toy?! . Like I said the Occupancy Certificate is not the tollgate that marks the completion of the house. The contract defines… 7 10710 Thank you so much everyone. This all makes a lot of sense. I guess when you talk to a builder who butters up everything to look very polished, you get to start believing… 7 17198 thank you! do we need to get this or our builder before we commence new build on the block? 2 10261 |