What is practical completion (PC)? An industry term explained
As an everyday homeowner or property investor, you will know that the construction industry has many industry-related terms that are often difficult to understand. At each stage of your home build, you might also come across industry acronyms that you may not be familiar with – namely PC and PCI.
Once your property has reached the point where all contracted building work has been completed – except for minor defects or omissions – it has reached practical completion, or PC. Your builder will notify you, usually in writing, that your property is ready for a PCI, or practical completion inspection. They will also provide you with an intended PC date.
A PCI can be commonly known as a handover inspection, though technically your handover is at the time of settlement, when you receive the keys to your new home.
It is at this inspection that you can walk through your property with your builder and discuss any issues you have regarding the build. You may also choose to engage a qualified third-party inspector, who will complete a PCI on your behalf to determine any finishing defects, and provide you and your builder with a detailed report.
Usually the builder will take around 10 working days to rectify the agreed defects. At this point you may have elected for your PC inspector to complete a second inspection on your behalf, to report whether the rectifications have been made by the builder. Remember that this is your final opportunity to discuss any issues with your builder before settlement.
Five ways to ensure a successful PC
1. It is important that you feel confident about the people you engage for the PC inspection on your property. After all, they are acting on your behalf, as your back-up with expert eyes for small items that could escalate into major issues later.
Preferably you want an experienced industry specialist – it will make all the difference when identifying and rectifying the defects on your property and reducing the opportunity for any ongoing maintenance issues.
2. Knowledge is power, and you will have a better grip on each stage of your build if you know the industry jargon. You don’t need to be a master of every construction term, but if you don’t understand an industry term, ask your builder or site supervisor to explain to you exactly what is meant.
3. Your PC inspector may identify items that the builder does not agree with. So, if your builder advises you that they will be not completing some of the items on your report, ask for an explanation.
Your inspector is there as your representative – and to make sure everything is communicated to you in the report.
4. Remember, good communication is key. We suggest that you notify your builder of your intention to have a third-party PC inspector complete either one or two inspections on your behalf, then there are no surprises.
5. Finally, always check your contract, where you will find specific details regarding the determination of practical completion on your build.