Practical Completion and Handover in WA Residential Construction

What it is

Practical completion in Western Australia is the moment a residential build is treated as substantially carried out under the contract, even if a short list of minor items is still open. The Home Building Contracts Act 1991 (WA) governs home building contracts under the statutory threshold and most contracts under the Master Builders WA or HIA WA suite use the same practical completion mechanism. Hitting practical completion lets the builder claim final payment, hand the home over to the owner and start the defects liability period.

A clean WA handover is a paperwork day backed by a tidy site. The work needs to be functionally finished. The Building Commission and the local permit authority need to have closed their pathways. The owner needs the document pack.

When WA treats the build as complete

The Home Building Contracts Act 1991 (WA) applies to home building work between $7,500 and $500,000. Above that, the contract terms govern but the same practical completion logic is the industry standard. The trigger is a written notice of practical completion served by the builder on the owner.

The notice should set out:

• The date the builder considers practical completion has been reached
• That the works have been substantially carried out
• The final claim amount payable
• Any minor defects or omissions still to be attended to
• The period the owner has to respond, usually five business days

If the owner does not dispute the notice inside that window, practical completion is taken to have happened on the date stated. If the owner disputes, the parties work it out under the contract or through Building and Energy at the Department of Mines, Industry Regulation and Safety.

What "substantially carried out" means

The work is substantially carried out when the home can be used for its purpose. A WA court or the State Administrative Tribunal looks at function, not perfection. Outstanding items are acceptable if they are minor, will not stop the owner moving in safely and do not breach the Building Code or the National Construction Code.

Examples that are usually fine at practical completion:

• A door that needs adjustment
• Touch up paint on a small wall section
• A loose tap handle
• A scratched but functional appliance face

Examples that are not:

• A shower that leaks
• A kitchen tap not connected to hot water
• A balustrade that fails the height check
• A smoke alarm not hard wired in a Class 1a home

The WA permit and approval pathway

Before the builder serves practical completion the building permit pathway has to be closed.

Notice of completion (BA7)

The builder lodges a BA7 with the permit authority inside seven days of the work being completed under the Building Act 2011 (WA). The BA7 is the formal statement that the work is complete and complies with the permit.

Occupancy permit or notice of completion

A Class 1a home does not need an occupancy permit. A BA7 is enough. A Class 1b or Class 2 build, or a strata title scheme, needs an occupancy permit (BA9) issued by the permit authority before anyone moves in.

Compliance documents

The BA7 needs to be backed by compliance documents covering plumbing, electrical, glazing, insulation and the energy efficiency assessment. The builder collects these from the trades. Without them the permit authority can reject the BA7.

What handover should include

The handover pack in WA usually includes:

• Notice of practical completion in writing with the date
• Final claim invoice
• BA7 receipt from the permit authority
• BA9 occupancy permit if the build needs one
• Plumbing compliance notice from the licensed plumber
• Electrical compliance covering installed circuits and switchboard
• Energy efficiency assessment matching the as built fabric
• Termite management notice fixed to the meter box
• Manufacturer warranties for installed equipment (hot water, oven, cooktop, rangehood, air conditioning, alarm)
• Keys, remotes, gate fobs, alarm codes
• Home indemnity insurance notice if not already provided

Walk the home with the owner. Record the defects list. Date it. Sign it. Give the owner a copy.

Defects liability period in WA

The standard defects liability period under a WA residential contract is typically six months, with the HIA WA new home contract and some Master Builders WA contracts setting twelve months. Check the contract on the desk before you quote a number to the owner.

Statutory warranties under the Home Building Contracts Act 1991 (WA) sit on top of the contractual period. Structural warranty under the home indemnity insurance scheme runs for six years from practical completion in WA.

During the defects period the builder has to attend and fix items that fall inside the warranty. The owner has to give reasonable access. Disputes start with Building and Energy.

Common reasons WA handover stalls

• BA7 not lodged because plumbing compliance is missing
• BA9 needed but never applied for on a strata scheme
• Energy efficiency report does not match the as built window schedule
• Termite notice not fixed to the meter box
• Glazing compliance certificates not collected from the supplier
• Owner refusing final claim until a cosmetic list is closed

Builders who pre check the document pack two weeks before practical completion in WA hit final payment fastest.

Practical takeaway for WA builders

Practical completion is a contractual event backed by a permit event. The BA7 closes the permit. The notice of practical completion closes the contract. Lodge both. Hand the owner a printed document pack on the day. Record the defects list on the day. That is the cleanest path from last trade on site to final payment cleared in WA.