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Inspections, Defects & Handover

Inspections & Defects Overview: What Inspections Happen & Your Rights

What inspections happen, who does them and your rights for defect rectification.

7 min read·Compare My Build — Independent Resource· Updated July 2026

Cost estimates only: Any building or upgrade figures in this guide are indicative, not fixed prices or quotes. Costs and inclusions vary by project, supplier, location and time. Confirm current written prices and specifications directly with your builder, suppliers and relevant trades.

Key Takeaways
  • Multiple inspections happen during construction — by the builder, council and optionally by you or a private inspector
  • You have the right to inspect each stage before making progress payments
  • Defects must be rectified by the builder at no cost during the defect liability period
  • Structural warranties (6–7 years) protect you beyond the defect liability period
  • State building authorities provide dispute resolution services if the builder won't fix defects

Building a new home involves multiple inspections — by the builder, by council building certifiers and optionally by you or a private building inspector. Understanding what inspections happen, when, who does them and what your rights are helps you ensure your home is built to standard and any defects are rectified.

Types of Inspections

  • Builder inspections — the builder's own quality control inspections at each stage
  • Council / certifier inspections — mandatory inspections by the building certifier at defined stages (slab, frame, final)
  • Owner inspections — your own inspections at each stage, before making progress payments
  • Private inspector inspections — independent inspections by a licensed building inspector (optional but recommended)
  • Practical completion inspection (PCI) — the final joint inspection by you and the builder before handover

When Inspections Happen

Inspections happen at each construction stage:

  • Slab stage — after the slab is poured and cured; council certifies the slab
  • Frame stage — after the frame is erected; council certifies the frame; you or a private inspector inspect
  • Lock-up stage — after external walls, roof, windows and doors; you inspect
  • Fixing stage — after internal fitout; you inspect
  • Practical completion — final inspection; you and the builder inspect together; council does a final certification

Your Rights

As a home buyer, you have the following rights:

  • Right to inspect — you can inspect the work at each stage before making the progress payment
  • Right to a private inspector — you can hire a private inspector (in most states, the builder can't charge you for this)
  • Right to withhold payment — you can withhold the progress payment if the stage is not complete or defective
  • Right to defect rectification — the builder must rectify defects at no cost during the defect liability period
  • Right to a structural warranty — state-mandated structural warranty (6–7 years) protects you beyond the defect liability period
  • Right to dispute resolution — state building authorities provide dispute resolution services
  • Right to take legal action — if the builder won't cooperate, you can take the matter to a tribunal or court

Tip

Exercise your right to inspect at each stage. Don't make a progress payment until you've inspected the stage and are satisfied. If you're not confident in identifying defects, hire a private inspector for the frame stage and practical completion — these are the most important inspections. Your rights are only useful if you exercise them.

What Is a Defect?

A defect is a failure to meet the contract, plans, specifications or building code. Examples:

  • Structural defects — frame issues, slab cracking, foundation movement, roof problems
  • Finishing defects — plaster dents, paint drips, tile lipping, cabinet misalignment
  • Installation defects — incorrect tapware, wrong appliances, missing fixtures
  • Compliance defects — work that doesn't meet the building code or Australian Standards
  • Incomplete work — items specified in the contract that haven't been installed

Not every imperfection is a defect. Minor variations in finish (within industry tolerances) are not defects. Normal wear and maintenance items (cleaning, adjusting, replacing globes) are not defects. If in doubt, report it to the builder and let them assess.

The Defect Rectification Process

  • 1. Identify the defect — during an inspection or after handover
  • 2. Document the defect — photos, description, location
  • 3. Report to the builder — in writing (email), with photos and a timeframe for rectification
  • 4. Builder assesses — the builder determines if it's a defect (they should respond within 10–20 business days)
  • 5. Builder rectifies — if it's a defect, the builder fixes it at no cost
  • 6. You verify — inspect the rectified work to ensure it's fixed correctly
  • 7. Escalate if needed — if the builder won't fix it, contact your state's building authority
Questions to Ask Your Builder
  • Can I inspect each stage before making the progress payment?
  • Can I hire a private inspector, and can the builder charge me for it?
  • What is the defect liability period in my contract, and what does it cover?
  • What is the structural warranty period in my state?
Common Mistakes to Avoid
  • Not exercising the right to inspect each stage before paying — you lose leverage
  • Not knowing the difference between a defect and normal maintenance — confusion causes disputes
  • Forgetting that the structural warranty (6–7 years) is separate from the defect liability period (3–6 months)
  • Not documenting defects in writing — verbal reports are easily forgotten or disputed
Builder Tips
  • Exercise your right to inspect each stage — don't pay until you're satisfied the work is correct
  • Hire a private inspector for the frame stage and PCI — the most important inspections
  • Report defects in writing (email) with photos — it creates a dated record
  • Know your state's building authority — they provide dispute resolution if the builder won't cooperate

Pre-Handover Inspection Guide

The most important inspection — prepare thoroughly.

Read the Guide

Frequently Asked Questions

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