Practical completion notice
The builder's written notice that works have reached practical completion. Triggers handover, final payment, and the start of the defects liability period.
Ask Chalkline about this →A practical completion notice is the builder’s written notice that the works have reached practical completion: the point where the building is complete and fit to occupy, apart from minor defects and omissions that do not stop the owner using it. The notice is the document that formally starts the end-of-job sequence.
What it typically triggers:
- Handover and the owner taking possession.
- The final (practical completion) progress claim falling due.
- The start of the defects liability period, during which the builder comes back to fix defects.
Who issues it and how: the builder gives the notice. The process then depends on the contract:
- Domestic contracts (HIA, Master Builders, state contracts): the builder notifies the owner, who inspects and either accepts practical completion or lists items to finish.
- Commercial contracts (such as AS 4000): the builder applies, and the superintendent assesses and issues a certificate of practical completion.
What it usually states: that practical completion has been reached, the date claimed, and often a list of minor outstanding items to be completed during the defects period.
Why it matters: the notice and the agreed practical completion date set the clock for final payment, the defects period, and the release of retention or security. Getting the date and the minor-defects list right at this point heads off disputes. The exact form, timeframes, and inspection rights are set by the specific contract; read the practical completion clause before issuing or responding to one.
Also known as: notice of practical completion, PC notice.
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Last updated: 2026-05-24. Verified: 2026-05-24. Quarterly review for currency.