The end of a build is the part most homeowners think about least and should think about most. Practical completion, the defects liability period and the statutory warranty periods are three separate things running on three separate clocks, and confusing them is how people lose the right to have work put right. This guide sets out how each one works for residential building work in Queensland, what the Queensland Building and Construction Commission (QBCC) requires, and what to actually do when you find a defect.
What does practical completion mean in a Queensland building contract?
The QBCC puts it plainly: practical completion means “your home is mostly finished and ready for use” (QBCC, Finalising work). Its guidance on the practical completion inspection describes it as the point where the building works are essentially finished and can be used for their intended purpose, with minor items still outstanding — the QBCC gives paint touch-ups, misaligned cabinetry, missing fittings and scratched surfaces as examples (QBCC, Practical completion inspection).
Practical completion is not perfection, and it is not the same as handover. It is a contractual milestone that says the house does what a house is meant to do. Your contract will define it precisely, so read that clause before you sign — on a new home build it is the trigger for the final payment.
Your builder should give you advance notice of the date. The QBCC advises that homeowners are notified two to three weeks ahead, with formal notice of the inspection at least five business days before it happens (QBCC, Handover). Use that window. Walk the house yourself first, at a different time of day, and write down everything before the joint inspection.
What happens at handover, and what should you receive?
Handover is when the completed, liveable home is formally passed to you. At the walkthrough you and your builder complete a defects document listing the outstanding minor items. The QBCC is specific about that record: it must “state when the contractor will attend to the matters”, it must separately list any minor defects or omissions that only you believe exist, and it must be signed by both the property owner and the contractor (QBCC, Handover).
You should also receive the keys and the documentation pack — the practical completion certificate for a new home, certificates of inspection, product warranties and manuals, and notices from service providers such as electricity, gas, water or sewerage. That includes the certifier’s Form 21 final inspection certificate, which for detached houses and smaller structures records that the building work is satisfactorily completed and complies with the building approval (QBCC, Handover and final documentation). Whether your approval file sits with Sunshine Coast Council or Noosa Shire Council does not change any of the QBCC timeframes below, but it does determine who holds the record you may need years later — worth knowing before you file the paperwork away.
You can also engage your own building inspector to check the building work on your behalf, though the QBCC notes this is at your own cost (QBCC, Practical completion inspection). On a large or complex job, that is money well spent.
When is the final payment due on a Queensland build?
The QBCC states that “the contractor can ask for final payment once they reach practical completion”, and advises you to check that you hold all the inspection certificates confirming the work has been completed correctly before you pay. Some contracts go further and require the contractor to provide all certificates of inspection, including the final certificate, before receiving that payment (QBCC, Handover and final documentation).
That is the leverage point. Once the final payment is made, you still have every legal right described below, but you no longer hold money. Do not withhold the whole final payment over a scratched skirting board — that is a breach of contract on your side — but do make sure the certificates exist and the signed defects list exists before you transfer funds.
What is the defects liability period, and how long is it?
The defects liability period is the window after completion during which your builder returns to fix defective work at their own cost. The length is set by your contract, and the QBCC’s position on the underlying obligation is direct: “A contractor must repair any defects noticed at handover or within 12 months of when the work is finished. The property owner must notify the contractor of any such defects within 12 months of when they notice them.” (QBCC, Practical completion inspection).
Practically, that means you should live in the house and watch it. Timber moves, slabs settle, and a summer of Sunshine Coast weather will find any water problem a builder’s inspection will not. Keep a running list and send it in one or two batches rather than a message every fortnight — it is easier for everyone to schedule and easier for you to prove.
Importantly, the defects liability period ending does not end your rights. It ends the simple, contractual, come-back-and-fix-it arrangement. The statutory warranties and the insurance cover run considerably longer.
What statutory warranties apply to residential building work in Queensland?
Schedule 1B of the Queensland Building and Construction Commission Act 1991 implies a set of warranties into regulated domestic building contracts (Queensland Building and Construction Commission Act 1991). Broadly, your builder warrants that the work will be carried out in an appropriate and skilful way with reasonable care and skill, in accordance with the plans and specifications; that materials will be good and suitable for their purpose; that the work will comply with all relevant laws and legal requirements; that it will be carried out with reasonable diligence within the contract period; and, for a new home, that it will be suitable for occupation when finished.
These warranties apply whether or not they are written into your contract, and they cannot be signed away. A written contract is itself compulsory in Queensland for domestic building work priced over $3,300 including labour, materials and GST, with level 1 contracts covering renovation, extension and repair work priced from $3,301 to $19,999 and level 2 contracts covering $20,000 and over (QBCC, Domestic building contracts). All of which is why a builder’s licence status matters: verify the QBCC licence before you sign, not after.
What does the Queensland Home Warranty Scheme cover?
The Queensland Home Warranty Scheme is compulsory insurance for residential construction work valued at more than $3,300 including materials, labour and GST. The premium is collected from you and paid to the QBCC by your contractor as part of the contract (QBCC, What is home warranty insurance).
Cover extends to refunding a deposit where work has not started, finishing incomplete work and repairing defects in it, fire, storm and tempest damage to incomplete work, and fixing defects and subsidence in the work after the project is completed. The scheme pays up to $200,000, with optional additional cover taking that to $300,000, plus limited allowances for alternative accommodation, removal and storage — a maximum of $5,000 under standard cover and $10,000 under the optional cover (QBCC, Maximum amounts covered).
A word of warning: this is insurance of last resort, not a maintenance service. It exists for when a builder cannot or will not put things right.
How long do you have to claim under the Queensland Home Warranty Scheme?
Cover runs for six years and six months from the earliest of the date you pay the premium, the date you agree to the contract, or the date work starts, and the QBCC notes the period “may be extended where the work takes longer than 6 months to complete” (QBCC, Time limits for cover and claims).
| Claim type | Window to detect the problem | Deadline to lodge the claim |
|---|---|---|
| Non-completion | Contract must end within 2 years after work starts (or 2 years from entering the contract if work never started) | Within 3 months after the day the contract ends |
| Structural defect | Become aware within 6 years 6 months after the cover commencement day | Within 3 months after the day you first become aware of it |
| Non-structural defect | Within 6 months after the day the work is substantially complete | Within 7 months after the day the work is substantially complete |
Note the mismatch that catches people out: your builder’s obligation to fix defects noticed within 12 months of completion is longer than the six-month detection window for a non-structural insurance claim. Both matter, and they are not interchangeable.
How do you raise a defect with your builder?
Start with a phone call, then follow it in writing. The QBCC requires that you “give your contractor written notice of every defective or unfinished item (e.g. by email or letter)” and that “the notice must give a timeframe (e.g. 14 days) for the contractor to rectify the items”. The QBCC is blunt about why it matters: “we cannot accept a complaint unless the other party has received the written notice” (QBCC, Lodge a defective work complaint).
Make the notice specific. Photograph each item, describe the location, and date everything. “The bathroom is not right” is not actionable; “water pooling at the eastern end of the ensuite floor waste, photographed 14 March” is.
The QBCC distinguishes defective work from a contractual disagreement. Defective building work is building work that is faulty or unsatisfactory, including work that does not comply with the Building Act 1975, the Building Code of Australia or the relevant Australian Standards, or a manufactured product installed contrary to the maker’s instructions. Structural defective building work adversely affects the structural performance of a building, the health or safety of people residing in or occupying it, or its functional use, or allows water penetration into the building. Non-structural defective building work does not meet a reasonable standard of construction or finish expected of a competent holder of a contractor’s licence of the relevant class, or has caused a settling-in period defect in a new building (QBCC, What is defective work). Disliking a tile colour you selected is neither.
What happens if the builder does not fix the defect?
If the written notice does not produce a result, you can lodge a defective work complaint with the QBCC. It is worth first assessing the item against the QBCC’s Standards and Tolerances Guide, which sets out what is and is not an acceptable standard of construction and finish. Plenty of things that look wrong to the eye sit inside the published tolerance, and knowing which side of the line your item falls on before you lodge saves everyone time.
The QBCC’s resolution process starts with facilitation: a resolution services officer assesses the complaint and contacts both parties to try to settle it, and where items remain unresolved the parties meet on site. QBCC inspections are visual, and invasive investigations are not undertaken. Where the work is found to be defective, the QBCC may issue a Direction to Rectify to the responsible licensee, and “in most cases, the rectification period will be 35 days”. If the matter is still not resolved, either party may apply to the Queensland Civil and Administrative Tribunal (QBCC, Resolution process for defective work).
How Roebuck Concepts handles completion and defects
We build on the Sunshine Coast and in Noosa Shire from one office at Unit 1/18 Lomandra Place, Coolum Beach. Roebuck Concepts holds QBCC company licence 15280811, and director Tom Roebuck holds individual QBCC licence 15015060 alongside more than 20 years in residential construction. We are a member of Master Builders Queensland.
In August 2025 our Grandview project at Coolum Beach won three Master Builders Queensland Sunshine Coast Housing & Construction Awards — Home Renovation/Remodelling Project over $1 million, Best Residential Swimming Pool, and Best Use of Innovation. Awards are judged on finished work, which is another way of saying they are judged at the same point this guide is about.
Our approach to handover is unremarkable on purpose: a documented pre-handover walkthrough, a signed defects list with dates against each item, and a full document pack before final payment. If something moves in the first twelve months, you call us and we come back. You can read more about how we run a build, see our completed renovations and extensions, or book a consult. Phone 0477 333 386 or email tom@roebuckconcepts.com.au.