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Pre Purchase Inspections and Practical Completion Reports Perth

W.A. Building Service Provider License # 14348

Email: christian@shsbuildingconsultants.com.au

0401 953 226

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Sunday, March 29 2015

We are often asked what is the purpose of Pracical Completion. It is a commonly misunderstood and extemely important date. Generally people assume that the date of PCI is also the date which the building should be finished. This is only partially correct. The legislated prupose of PCI and some common misconceptions are outlined below:

Practical Completion (also known as PCI) is an extemely important date in the life of your new home and also an extremely important date within your building contract. This is the date on which the builders minimum defect liabilty period begins. In accordance with legislation your builder has a minimum of 120 days - taken from the date of practical completion - to perform the home building work in a proper and workmanlike manner and to ensure that all building materials are of a merchantable quality and reasonably fit for purpose. Technically this means that even on the day of practical completion your builder has 120 days to finish the building work- with some exceptions (see below)

In addition to being the start date of the 120 day defects liability period, Practical Completion is also the date  - in accordance with legislation - where the home building work must be completed (except for any omissions or defects which do not prevent the home building work from being reasonably capable of being used for its intended purpose.) This means that although the builder has a minimum 120 days to finish off the building work, the home must be reasonably able to be used (ie lived in) from the handover date. If there are any structural defects, or other defects which do not permit the residence to be inhabited or used - then Practical Completion has not been reached.

Secondary to the above legislative purpose of PCI the builder usually requests final payment at PCI. Often people think, do I have to pay the final amount if the house is not finished? Mostly the answer is yes, as long as Practical Completion has been reached.

A new home is a big investment and SHS building report will save you money and time by identifying incomplete or defective work before your builder hands the property (and any problems - including time delays or non-acceptance for defect liability rectification) over to you. We can advise if Practical Completion has been reached and we will include all building components which are considered defective in accordance with legislation so that your builder can rectify the items prior to PCI, handover or prior to the defects libility period running out.

Posted by: SHS ADMIN AT 07:50 am   |  Permalink   |  0 Comments  |  Email
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Time limits on complaints for Building Work.

There are essentailly two reasons why you would have a building complaint. They are:

  • You have been adversely affected by building work (this can be a builder you hired or even one that your neighbours have engaged).
  • You have a contract dispute.

As set out in the Building Services (complaint Resolution and Administration Act 2011

Building Services Complaint:

A building service complaint must be made within 6 years after the completion of the regulated building service to which the complaint relates. This means 6 years from Pratccial Completion. It is interesting to note that a Building Services complaint may be made by sebsequent owners for a period of 6 years after PCI.

An example of a Building Services complaint is if the neighbours engaged a builder to construct a new home and the stormwater drainage is affecting your property.

Another example is if you hired a builder to install some new windows and they have begun to crack within 6 years.

If the builder attends to fix something, you get another 6 years waranty 


A Breach of Contract:

You have 3 years to lodge a claim for a contract dispute.

An example may be that you requested a specific brand of tile and it was not installed or the builder did not finish the home building work on time.

0401 953 226

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