A pre-occupancy inspection is a detailed assessment of a newly constructed building carried out before the owner or tenant moves in. In Australia, this inspection checks the property against the National Construction Code (NCC), the approved building plans, and the terms of the construction contract. It identifies defects, incomplete work, and non-compliant items while the builder is still responsible for rectification. A typical pre-occupancy inspection for a new house costs between $500 and $900 and takes two to four hours, depending on the property size and complexity.
Research consistently shows that around 70% of newly built Australian homes contain defects at the time of handover. Many of these are cosmetic, but a significant number involve structural, waterproofing, or safety issues that can cost thousands of dollars to fix later. The pre-occupancy inspection is your opportunity to identify every one of these problems while the builder still has a legal and contractual obligation to address them at no cost to you.
This article provides a room-by-room and system-by-system checklist for pre-occupancy inspections, explains your legal protections in each state, and outlines what to do if defects are found.
What Is a Pre-Occupancy Inspection?
A pre-occupancy inspection (also called a practical completion inspection or PCI) is a thorough review of a newly built property carried out after the builder declares practical completion but before the buyer makes the final payment and receives the keys. The purpose is to verify that the building has been completed in accordance with the approved plans, the NCC, and the building contract.
This inspection differs from the council or certifier inspections that occur during construction. Council inspections verify that minimum regulatory requirements are met at each mandated stage. A pre-occupancy inspection goes further by examining workmanship quality, fit and finish, and overall build standard from the perspective of the person who will live in the property.
Why Council Inspections Are Not Enough
Council and private certifier inspections focus on minimum code compliance at specific construction stages. They do not assess the overall quality of workmanship, the condition of finishes, or whether the property matches the specifications in your contract. A pre-occupancy inspection by an independent building inspector fills this gap.
When Should You Arrange the Inspection?
Timing matters. The inspection should happen after the builder has completed all work and declared practical completion, but before you sign off on the final progress payment.
Builder declares practical completion
Your builder will notify you that the property is ready for handover. This triggers your right to inspect the property or have it inspected on your behalf.
Book an independent inspector
Engage a licensed, independent building inspector who is not affiliated with the builder or developer. Book the inspection as soon as you receive the practical completion notice to avoid delays.
Conduct the inspection
The inspector assesses every accessible area of the property using the checklist categories outlined below. You should attend the inspection where possible so you can see defects firsthand.
Review the report and present it to the builder
The inspector provides a detailed report with photographs. Present this to your builder with a request for rectification of all items before you make the final payment.
Re-inspect after rectification
Once the builder addresses the defects, arrange a follow-up inspection to confirm every item has been resolved to an acceptable standard.
Warning
Do not make the final payment or accept the keys until all defects have been addressed. Once you take possession, your leverage to compel the builder to rectify issues is significantly reduced.
Structural and Exterior Checklist
The structural elements of a new building are the most important to check because defects in these areas can affect the safety, durability, and value of the property.
- Concrete slab is free from visible cracks wider than 0.5mm, uneven surfaces, or excessive moisture
- External walls are plumb, straight, and free from cracks, bulges, or render defects
- Brickwork has consistent mortar joints with no missing or cracked bricks
- Roof tiles or sheeting are properly fixed, aligned, and free from chips or damage
- Ridge capping is sealed and secure with no visible gaps
- Fascia and gutter lines are straight with no sagging, gaps, or incorrect falls
- Downpipes are securely fixed, connected to stormwater, and free from dents
- Window and door frames are square, properly sealed, and free from scratches or dents
- Weep holes are clear and unobstructed at the base of external walls
- Flashing around windows, doors, and roof penetrations is properly installed
- Eaves and soffits are intact with no visible gaps, damage, or missing sections
Interior Finishes Checklist
Interior finishes are where the majority of cosmetic defects are found. While these may not affect structural integrity, they indicate the builder's attention to detail and overall workmanship standard.
- Internal walls are smooth, plumb, and free from visible plasterboard joins, nail pops, or dents
- Paintwork is even with no drips, brush marks, missed areas, or colour inconsistencies
- Ceiling surfaces are flat and free from sagging, cracking, or water stains
- Doors open and close smoothly, latch correctly, and have even gaps around the frame
- Door handles and locks operate without resistance or looseness
- Windows open, close, and lock smoothly with no binding or gaps in seals
- Tiling is level with no lippage, cracked tiles, or incomplete grouting
- Flooring is flat, free from squeaks, and properly finished at transitions and edges
- Skirting boards and architraves are straight, tightly joined, and properly painted or sealed
- Cabinetry doors and drawers are aligned, close flush, and operate on soft-close mechanisms where specified
- Benchtops are level, properly sealed at edges, and free from chips or scratches
- Built-in wardrobes have functioning doors, shelves, and hanging rails as per specifications
Plumbing and Wet Area Checklist
Plumbing defects and waterproofing failures are among the most expensive issues to fix after handover. Wet areas must comply with Australian Standard AS 3740 for waterproofing.
- All taps deliver hot and cold water with adequate pressure when multiple taps run at the same time
- No leaks are visible under sinks, behind toilets, or around shower bases
- Toilets flush correctly and cisterns refill without running continuously
- Shower screens are securely fixed with no gaps that could allow water escape
- Floor wastes drain quickly with no pooling or slow drainage
- Bathroom and laundry floors fall correctly towards the floor waste
- Silicone sealant around baths, showers, basins, and benchtops is complete and consistent
- Hot water system operates correctly and delivers water at the expected temperature
- External taps are operational and hose connections are in place
- Waterproofing certification has been provided for all wet areas
Waterproofing failures are one of the top three defect categories in new Australian buildings. Once tiling is laid over the waterproof membrane, the only way to confirm the membrane's integrity is through testing or by reviewing the waterproofing certificate. Always request this documentation before accepting the property.
Electrical and Safety Systems Checklist
Electrical work must comply with AS/NZS 3000 (the Wiring Rules) and be completed by a licensed electrician. Safety systems are subject to specific NCC requirements.
- All power points are operational (test with a phone charger or small appliance)
- Light switches work correctly and are firmly mounted to the wall
- Light fittings are secure, properly aligned, and functioning
- Exhaust fans in bathrooms and kitchens operate and vent to the outside, not into the roof space
- Rangehood is functional and properly ducted
- Smoke alarms are installed in required locations and are operational
- Switchboard is correctly labelled with all circuits identified
- Safety switches (RCDs) are installed and functioning when tested
- TV, data, and phone points are in the correct locations and properly terminated
- Air conditioning units operate on both heating and cooling modes
- Garage door opener functions correctly with all remote controls working
Outdoor and External Works Checklist
External works are frequently incomplete at the time of practical completion. Every item specified in the building contract should be verified.
- Driveway is level, properly finished, and free from cracks or surface defects
- Pathways and paved areas have correct falls away from the building
- Retaining walls are structurally sound with functioning drainage
- Fencing is installed to the correct height and alignment as per contract
- Letterbox and house numbers are installed as specified
- Landscaping and turf are completed to the agreed standard
- Clothesline is installed and functional
- External lighting is operational
- Stormwater drainage connects correctly and does not direct water towards the building or neighbouring properties
- Site is clean and free from construction debris, excess materials, and rubbish
NCC Compliance and Documentation Checks
Beyond the physical inspection, a number of documents and certificates should be obtained before you accept the property. These confirm that the building complies with the NCC and relevant Australian Standards.
| What It Is | Why You Need It | |
|---|---|---|
| Occupation Certificate | Issued by the principal certifying authority confirming the building is suitable for occupation | Without this certificate, it is illegal to occupy the building in most states |
| Waterproofing Certificate | Issued by the licensed waterproofer confirming AS 3740 compliance in wet areas | Proves the waterproof membrane was correctly installed before tiling |
| Electrical Certificate of Compliance | Issued by the licensed electrician confirming all electrical work meets AS/NZS 3000 | Confirms safe installation and compliance with the Wiring Rules |
| Plumbing Certificate of Compliance | Issued by the licensed plumber confirming all plumbing and drainage work is compliant | Verifies that water supply, drainage, and gas installations meet current standards |
| Termite Protection Certificate | Issued by the pest management company confirming termite management system installation | Required by the NCC and provides warranty details for ongoing termite protection |
| Home Warranty Insurance | Insurance certificate covering defective or incomplete work if the builder dies, disappears, or becomes insolvent | Legally required in most states for residential building work over specified thresholds |
Common Defects Found During Pre-Occupancy Inspections
Based on thousands of inspections across NSW, Victoria, and Queensland, certain defect categories appear far more frequently than others in new builds.
- Paintwork defects account for the highest volume of items. Drips, uneven coverage, scuff marks, and missed touch-ups are found in the majority of new homes.
- Tiling issues including lippage (uneven tile edges), cracked tiles, hollow tiles (debonding), and incomplete or crumbling grout are common in bathrooms and kitchens.
- Door and window problems such as binding, poor alignment, missing hardware, and failed seals regularly appear on defect reports.
- Plumbing defects including leaking taps, slow drainage, low hot water pressure, and missing silicone sealant around fixtures.
- Waterproofing failures in shower recesses, balconies, and laundries, often identified through water ponding or missing certificates.
- Concrete slab cracks that exceed acceptable tolerances and may indicate movement or poor curing.
- Incomplete external works such as unfinished driveways, missing landscaping, or poorly graded surfaces that direct water towards the building.
- Cabinetry and joinery defects including misaligned doors, non-functioning drawer runners, and chipped or scratched surfaces.
The average pre-occupancy inspection for a standard new home identifies between 40 and 100 defect items. Most are minor, but it is not uncommon to find 5 to 10 items that require immediate attention before the property should be accepted.
What to Do When Defects Are Found
Finding defects is expected. What matters is how they are managed and resolved before handover.
Review the inspection report thoroughly
Go through every item in the report and understand the severity of each defect. Your inspector should classify items as major, minor, or cosmetic to help you prioritise.
Send the report to your builder in writing
Provide the full inspection report to the builder with a written request for rectification of all items. Keep a copy and record the date of submission.
Agree on a rectification timeline
Work with the builder to establish a reasonable timeframe for completing all rectification work. Most building contracts allow the builder a set period to address defects after notification.
Withhold the final payment until defects are resolved
Under most building contracts and state legislation, you are entitled to withhold the final progress payment until the building reaches practical completion, which means all defects have been rectified.
Arrange a re-inspection
Once the builder advises that all rectification work is complete, have your independent inspector conduct a follow-up inspection to confirm every item has been properly addressed.
Escalate if the builder refuses to rectify
If your builder fails to address the defects, you can lodge a complaint with your state's building authority (for example, NSW Fair Trading, the VBA in Victoria, or the QBCC in Queensland). These bodies can issue rectification orders and impose penalties.
State-by-State Legal Protections
Each Australian state and territory has its own building legislation that provides specific protections for owners of new builds.
| Legislation | Major Defects Warranty | Minor Defects Warranty | Complaints Body | |
|---|---|---|---|---|
| NSW | Home Building Act 1989 | 6 years | 2 years | NSW Fair Trading |
| Victoria | Domestic Building Contracts Act 1995 | 6 years | 2 years | Victorian Building Authority (VBA) |
| Queensland | Queensland Building and Construction Commission Act 1991 | 6 years 6 months | 12 months (non-structural) | QBCC |
| South Australia | Building Work Contractors Act 1995 | 5 years | 5 years | Consumer and Business Services SA |
| ACT | Building Act 2004 | 6 years | 2 years | ACT Planning and Land Authority |
Important
Warranty periods start from the date of practical completion, not the date you move in. This makes the pre-occupancy inspection even more significant because defects documented at this stage are clearly within the warranty period and the builder cannot argue they occurred after handover.
DIY Inspection vs Professional Inspection
Some buyers attempt to conduct a pre-occupancy inspection themselves. While a DIY walkthrough can catch obvious cosmetic issues, it has significant limitations compared to a professional inspection.
DIY Inspection
Pros
- No cost beyond your own time
- Can identify visible cosmetic defects such as paint drips and scratched surfaces
- Gives you a general feel for the property before handover
Cons
- Lacks the technical knowledge to identify structural, waterproofing, and compliance defects
- Cannot assess whether work meets NCC requirements or Australian Standards
- Does not produce a professional report that carries weight in disputes
- May miss concealed defects that a trained inspector would detect
- Builder may dismiss findings without a professional report backing them up
Professional Inspection
Pros
- Conducted by a licensed inspector with experience in new construction defects
- Identifies structural, compliance, and concealed defects beyond cosmetic issues
- Produces a detailed written report with photographs that can be used in disputes
- Gives the builder a professional document that demands a formal response
- Inspector can assess NCC compliance and adherence to Australian Standards
Cons
- Costs between $500 and $900 depending on property size and location
- Requires booking in advance, which may add a few days to the process
The cost of a professional pre-occupancy inspection is a fraction of what even a single undetected structural or waterproofing defect could cost to rectify after settlement. For most new builds, the investment is well worth it.
Key Takeaways
- A pre-occupancy inspection should be conducted after practical completion and before the final payment is made.
- Around 70% of newly built Australian homes contain defects at the time of handover, making independent inspection a sound investment.
- The inspection covers structural elements, interior finishes, plumbing, electrical, safety systems, external works, and NCC compliance.
- Always request certificates for waterproofing, electrical, plumbing, termite protection, and the occupation certificate before accepting the property.
- Present the inspection report to the builder in writing and withhold the final payment until all defects are rectified.
- Statutory warranty periods for major defects range from 5 to 6.5 years depending on your state, starting from practical completion.
- A professional inspection report carries significantly more weight in disputes than a DIY walkthrough.
- If the builder refuses to rectify defects, lodge a complaint with your state building authority such as NSW Fair Trading, the VBA, or the QBCC.
Frequently Asked Questions
QWhat is a pre-occupancy inspection for a new building?
A pre-occupancy inspection is a detailed assessment of a newly constructed building conducted before the buyer moves in. It checks the property against the National Construction Code (NCC), the approved building plans, and the construction contract. The inspection identifies defects, incomplete work, and non-compliant items so the builder can rectify them before handover. It is also commonly referred to as a practical completion inspection (PCI) or pre-handover inspection.
QHow much does a pre-occupancy inspection cost in Australia?
A pre-occupancy inspection for a standard new house in Australia typically costs between $500 and $900. The price depends on the property size, location, and complexity. Multi-storey homes, larger builds, and properties with additional structures such as granny flats will be at the higher end. The cost is paid by the property owner and is a small investment compared to the potential cost of undetected defects.
QWhen should a pre-occupancy inspection be done?
The inspection should be conducted after the builder declares practical completion but before you make the final progress payment and receive the keys. This timing gives you maximum leverage to require the builder to fix any issues. Do not wait until after settlement because your ability to compel rectification drops significantly once you have taken possession and paid in full.
QIs a pre-occupancy inspection mandatory in Australia?
A pre-occupancy inspection by an independent inspector is not legally mandatory in any Australian state or territory. However, it is strongly recommended by consumer protection bodies and building industry professionals. Most building contracts include a clause allowing the owner to inspect or have the property inspected before accepting practical completion. Without this inspection, you risk accepting a property with hidden defects.
QWhat is the difference between a pre-occupancy inspection and a council inspection?
Council or certifier inspections are conducted at mandated construction stages to verify minimum regulatory compliance with the NCC and approved plans. They focus on code compliance, not workmanship quality. A pre-occupancy inspection by an independent building inspector goes further, assessing overall build quality, workmanship, finishes, and contract compliance from the buyer's perspective. Both serve different purposes and one does not replace the other.
QHow many defects are typically found in a new building inspection?
A standard pre-occupancy inspection for a new home typically identifies between 40 and 100 defect items. The majority are minor or cosmetic, such as paint drips, scuff marks, and small tile imperfections. However, it is common to find 5 to 10 items that are more serious and require attention before handover, including plumbing leaks, waterproofing concerns, and non-compliant installations.
QCan I withhold the final payment if defects are found?
Yes, in most Australian states you can withhold the final progress payment until the building reaches a standard of practical completion as defined in your building contract and state legislation. The specific rules vary by state. In NSW, the Home Building Act 1989 allows you to withhold payment for incomplete or defective work. In Victoria, the Domestic Building Contracts Act 1995 provides similar protections. Always check your contract terms and seek legal advice if the builder disputes your right to withhold payment.
QWhat documents should I receive before moving into a new build?
Before accepting a new build, you should receive the occupation certificate (or certificate of classification), waterproofing certificates for all wet areas, the electrical certificate of compliance, the plumbing certificate of compliance, the termite protection certificate, home warranty insurance documentation, appliance warranties and manuals, a copy of the as-built plans, and any energy efficiency or Section J compliance documentation required under the NCC.
QHow long does the builder's warranty last in Australia?
Statutory warranty periods vary by state. In NSW and Victoria, major defects are covered for 6 years and minor defects for 2 years from practical completion. In Queensland, the QBCC provides 6 years and 6 months for structural defects and 12 months for non-structural defects. South Australia provides 5 years for all building work. The warranty period starts from the date of practical completion, which is why documenting defects at the pre-occupancy inspection is so important.
QWhat happens if my builder refuses to fix defects?
If your builder refuses to rectify defects identified during the pre-occupancy inspection, you have several options. Start by putting your request in writing with the inspection report attached. If the builder still refuses, lodge a formal complaint with your state building authority. In NSW, contact NSW Fair Trading. In Victoria, contact the Victorian Building Authority or lodge a dispute with DBDRV. In Queensland, contact the QBCC. These bodies can issue rectification orders and impose penalties on non-compliant builders.
QShould I attend the pre-occupancy inspection?
Yes, attending the inspection is recommended whenever possible. Being present allows you to see defects firsthand, ask the inspector questions about their findings, and better understand the condition of your new property. It also helps you explain any specific concerns or contract specifications that the inspector should pay attention to. However, the inspector will provide a comprehensive written report with photographs regardless of whether you attend.
QCan a pre-occupancy inspection report be used in legal proceedings?
Yes. A professional inspection report prepared by a licensed building inspector is an admissible document in tribunals such as NCAT (NSW) and VCAT (Victoria), as well as in courts. It provides independent, documented evidence of the condition of the property at the time of inspection. This is particularly valuable for warranty claims, dispute resolution, and any proceedings through state building authorities.
QDo I need a pest inspection for a brand new building?
While termite infestations are less common in brand new builds, a pest inspection is still worthwhile. Termite activity can begin during construction, particularly in areas with high termite risk such as Queensland, the NSW north coast, and parts of Victoria. The NCC requires termite management systems for new buildings, and your pre-occupancy inspection should verify that this system has been installed and that the termite protection certificate has been provided.
References and Resources
- National Construction Code (NCC) - Australian Building Codes Board - Minimum performance requirements for new buildings in Australia
- NSW Fair Trading - Home Building - Consumer protections under the Home Building Act 1989
- Victorian Building Authority - Building regulation and consumer guidance for Victoria
- Queensland Building and Construction Commission - Licensing, insurance, and dispute resolution for Queensland building work
- Consumer and Business Services SA - Building industry regulation in South Australia
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Building a new home or about to take possession of one? Owner Inspections provides independent pre-occupancy inspections across NSW, Victoria, and Queensland. Our licensed building inspectors deliver detailed reports with photographs that document every defect and give you the evidence you need to hold your builder accountable. Get a quote today or call us on 1300 471 805.