A pre-handover inspection (also called a practical completion inspection or PCI) is a professional assessment conducted by a licensed building inspector before the builder hands over a new home. It identifies construction defects, incomplete work, and non-compliant items that the builder must rectify. A final walkthrough, by contrast, is a buyer-conducted visual check carried out on or just before settlement day to confirm that all identified defects have been fixed and the property is in the agreed condition. Both steps are recommended for Australian home buyers purchasing new construction. The pre-handover inspection catches technical and structural issues, while the final walkthrough verifies that the builder has addressed them.
Buying a newly built home is exciting, but the period between practical completion and handover is one of the most important stages of the entire process. This is your opportunity to make sure the home you are paying for matches the plans, specifications, and quality standards set out in your building contract.
Many buyers confuse the pre-handover inspection with the final walkthrough, or assume one replaces the other. In reality, they are two separate steps with different purposes, and skipping either one can leave you accepting defects that become your problem after settlement.
What Is a Pre-Handover Inspection?
A pre-handover inspection (PCI) is a thorough assessment of a newly built home conducted by a qualified, independent building inspector before the builder declares practical completion and hands over the property to the buyer.
The inspector examines the property systematically, checking every accessible area against the approved plans, the building contract specifications, the National Construction Code (NCC), and relevant Australian Standards. Any defects, incomplete work, or non-compliant items are documented in a detailed written report with photographs.
This report is then provided to the builder as a formal list of items that must be rectified before handover or within the defects liability period.
In most Australian states, the builder must rectify defects identified at practical completion before handover. Defects found after handover are covered by statutory warranty periods (typically 2 years for minor defects and 6 years for structural defects in most states).
What Is a Final Walkthrough?
The final walkthrough is the buyer's personal inspection of the property, usually conducted on or just before the day of settlement. Unlike the pre-handover inspection, the final walkthrough is typically done by the buyer themselves, without the builder or a professional inspector present.
The primary purposes of the final walkthrough are:
- Confirming that all defects identified during the pre-handover inspection have been rectified by the builder
- Checking that no new damage has occurred since the pre-handover inspection
- Familiarising yourself with the property (testing taps, switches, doors, windows, appliances)
- Giving final approval before settlement proceeds
If you find that defects have not been rectified or new issues have appeared, you can raise these with the builder before completing settlement.
Key Differences at a Glance
| Pre-Handover Inspection | Final Walkthrough | |
|---|---|---|
| Who Conducts It | Licensed building inspector (independent third party) | The buyer (sometimes with a friend, family member, or advisor) |
| Purpose | Identify defects, incomplete work, and non-compliant items before handover | Verify defects have been fixed, check for new issues, and give final approval |
| Timing | After the builder notifies practical completion, before handover | On or just before settlement day |
| Level of Detail | Comprehensive, professional assessment with detailed report and photographs | General visual check by the buyer |
| Report Produced | Yes, formal written report with defect list | Usually informal notes or a personal checklist |
| Cost | $300 to $600 (professional fee) | Free (done by the buyer) |
What Each Step Covers
Pre-Handover Inspection Coverage
The inspector assesses all accessible areas of the property:
- External: Brickwork, render, cladding, windows, doors, garage, driveway, paths, fencing, landscaping, drainage, retaining walls
- Roof: Tiles or sheeting, ridge capping, flashings, gutters, downpipes, fascia, soffit
- Internal: Walls, ceilings, floors, doors, windows, skirting, architraves, paint, tiling
- Wet areas: Bathroom, ensuite, laundry, kitchen (waterproofing, tiling, fixtures, sealants)
- Fixtures and fittings: Cabinetry, benchtops, tapware, power points, light switches, door hardware
- Roof space: Framing, insulation, sarking, ventilation (where accessible)
- Subfloor: Ventilation, moisture, services (where accessible)
- Compliance: Comparison against approved plans and building contract specifications
Final Walkthrough Coverage
The buyer's walkthrough is less technical but still important:
- Confirm that defects listed in the PCI report have been fixed
- Test all taps, switches, power points, and appliances
- Open and close all doors and windows
- Check all rooms for new damage, marks, or incomplete touch-ups
- Inspect the exterior for any new damage or unfinished work
- Verify that the property is clean and ready for handover
Why You Need Both
Some buyers assume the final walkthrough is sufficient and skip the professional pre-handover inspection to save money. This is a common mistake for several reasons:
- A licensed inspector has the training and experience to identify defects that are not visible to the untrained eye, such as structural issues, waterproofing failures, and non-compliant work
- The inspector's report provides formal, documented evidence that can be used to require the builder to fix issues under the building contract
- The final walkthrough confirms that the builder acted on the inspection findings, closing the loop on the defect rectification process
- Together, the two steps give you the strongest position at handover
Once you accept handover and settle, defects become much harder to get the builder to fix. The pre-handover inspection is your best opportunity to have issues rectified at the builder's expense before you take possession.
Timing in the Construction Process
Builder notifies practical completion
The builder advises that the home is substantially complete and ready for inspection.
Pre-handover inspection (PCI)
You engage an independent building inspector to assess the property. This should be done within a few days of the practical completion notification.
Defect list provided to builder
The PCI report is provided to the builder, who is responsible for rectifying the identified defects.
Builder rectifies defects
The builder carries out the necessary repairs and touch-ups. This may take days to weeks depending on the extent of the defects.
Final walkthrough
You visit the property to confirm that all defects have been addressed and the home is ready for settlement.
Settlement and handover
If you are satisfied, settlement proceeds and the builder hands over the keys.
Tips for Getting the Most from Each Step
Pre-Handover Inspection Tips
- Engage an independent, licensed building inspector with experience in new construction
- Attend the inspection if possible so you can see the issues firsthand and ask questions
- Provide the inspector with a copy of the approved plans and building contract specifications
- Request a detailed report with photographs, descriptions, and references to the relevant standard or contract clause
- Follow up with the builder in writing, providing a copy of the report and requesting a timeline for rectification
Final Walkthrough Tips
- Bring a copy of the PCI report and check each item on the defect list
- Test every tap, switch, power point, door, and window
- Check for new marks, damage, or unfinished work that may have occurred during the rectification period
- Take photographs of any remaining issues and note them in writing
- Do not feel pressured to accept handover if significant defects remain unresolved
Common Defects Found at Pre-Handover
- Paint defects (runs, drips, missed areas, uneven coverage)
- Scratched or damaged benchtops, fixtures, and fittings
- Poorly finished tiling (uneven grout, lippage, chipped tiles)
- Doors that do not close properly or have gaps
- Windows that do not seal or lock correctly
- Cracking in plasterboard walls or ceilings
- External drainage issues or unfinished landscaping
- Incomplete or missing items specified in the building contract
- Waterproofing concerns in wet areas
- Roof space issues (missing insulation, inadequate ventilation)
Key Takeaways
- A pre-handover inspection is a professional assessment by a licensed inspector that identifies defects before the builder hands over the new home.
- A final walkthrough is a buyer-conducted check on settlement day to confirm defects have been fixed and the property is ready.
- Both steps serve different purposes and you should complete both for the strongest position at handover.
- The pre-handover inspection catches technical and structural issues that are not visible to an untrained eye.
- The final walkthrough closes the loop by verifying the builder has acted on the inspection findings.
- Once you accept handover and settle, getting the builder to fix defects becomes significantly harder.
- Typical pre-handover inspection costs range from $300 to $600, which is a small price compared to the cost of living with unresolved defects.
Frequently Asked Questions
QWhat is the difference between a pre-handover inspection and a final walkthrough?
A pre-handover inspection is a professional assessment conducted by a licensed building inspector to identify construction defects, incomplete work, and non-compliant items. A final walkthrough is a buyer-conducted visual check on or before settlement day to confirm that defects have been rectified and the property is in the agreed condition. The pre-handover inspection is technical and detailed; the final walkthrough is a confirmation step.
QDo I need both a pre-handover inspection and a final walkthrough?
Yes. Both steps serve different purposes. The pre-handover inspection identifies defects that need to be fixed. The final walkthrough confirms that the fixes have been completed. Skipping either step can leave you accepting a property with unresolved issues.
QHow much does a pre-handover inspection cost?
A pre-handover inspection in Australia typically costs between $300 and $600, depending on the property size and location. This is a small investment compared to the cost of rectifying defects after you have taken possession of the home.
QWhen should the pre-handover inspection be done?
The pre-handover inspection should be conducted after the builder notifies you that the home has reached practical completion but before you accept handover and settle. This gives you time to have the report prepared, provide it to the builder, and allow the builder to rectify any identified defects before settlement.
QCan I do the pre-handover inspection myself?
You can conduct your own visual check, but a licensed building inspector has the training, experience, and tools to identify defects that are not visible to the untrained eye. Issues such as waterproofing failures, structural non-compliance, and roof space defects require professional assessment. Self-inspection is no substitute for a professional PCI.
QWhat happens if defects are found during the pre-handover inspection?
The inspection report is provided to the builder, who is responsible for rectifying the identified defects before handover. The builder should address the items within a reasonable timeframe. Once the builder advises that rectification is complete, the final walkthrough confirms the work has been done to an acceptable standard.
QWhat if defects are still not fixed at the final walkthrough?
If significant defects remain unresolved at the final walkthrough, you can request that the builder address them before you proceed with settlement. Depending on your building contract, you may have the right to withhold settlement until the defects are rectified. Seek legal advice if the builder is unresponsive.
QWhat are the most common defects found at pre-handover?
Common defects include paint imperfections, scratched or damaged fixtures, poorly finished tiling, doors and windows that do not close or seal properly, cracking in plasterboard, drainage issues, missing items from the building contract specifications, and waterproofing concerns in wet areas. Many of these are straightforward for the builder to fix if identified before handover.
QIs a pre-handover inspection the same as a building inspection?
A pre-handover inspection is a specific type of building inspection conducted on a newly built home at practical completion. It focuses on construction defects, incomplete work, and contract compliance. A general building inspection (such as a pre-purchase inspection) assesses the overall condition of an existing property. Both involve a licensed inspector, but the scope and purpose differ.
QWhat warranty period applies after handover in Australia?
In most Australian states, statutory warranty periods apply after handover. Typically, minor defects are covered for 2 years and structural defects for 6 years (or 6 years and 10 years in some jurisdictions). The specific periods vary by state. In NSW, the Home Building Act 1989 provides 2 years for minor defects and 6 years for major defects. In Victoria, the Domestic Building Contracts Act 1995 provides similar protections.
References and Resources
- National Construction Code (NCC) - Australian Building Codes Board
- Home Building Act 1989 (NSW) - NSW Government
- Domestic Building Contracts Act 1995 (VIC) - Victorian Government
- Queensland Building and Construction Commission (QBCC) - Building standards and warranties in Queensland
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Buying a new home? Owner Inspections provides independent pre-handover inspections across NSW, Victoria, and Queensland. Our licensed building inspectors deliver detailed defect reports that ensure your builder meets the standards you are paying for. Get a quote today or call us on 1300 471 805.