E121. When is a building project actually finished?

When is a building project actually finished? Most people would say when the keys are handed over, the final payment is made, and you’ve moved in. But legally and financially the answer is very different.

In this eye-opening episode of the Building Design, Prime Time Podcast, Amelia and Frank unpack one of the most misunderstood and costly aspects of building, renovating, and extending: legal completion and certification. Through real-life stories and industry insight, they reveal how missing permits, skipped inspections, and forgotten paperwork can come back to haunt homeowners, sometimes many years later.

From refused insurance claims and failed property sales to unexpected compliance upgrades and massive financial stress, this episode exposes the hidden risks that most homeowners never see coming. Frank explains the critical difference between occupancy certificates and completion certificates, why moving in early can create serious long-term issues, and how poor administration, not poor construction, is often the root cause of major building problems.

Whether you're planning a new home, renovation, extension, shed, deck, or pool or even thinking of buying or selling, this episode delivers essential knowledge that could save you tens of thousands of dollars and months of stress.

This may not be the most glamorous topic, but it’s one of the most important. If you want to protect your investment, avoid nasty surprises, and truly understand when your building project is finished, this is a must-listen episode.

🎧 Tune in and make sure your project is completed — properly.

About us
Prime Design is a building design company locally owned and operated in Tasmania since 2004.  Our goal is to share as much valuable information as possible about the process of building design, extensions, and more. We will talk about a different topic each week. To suggest a topic you would like us to talk about contact us at info@primedesigntas.com.au

Disclaimer
The information provided on this podcast is for educational and informational purposes only and is not intended to be a substitute for professional advice, individual circumstances, or remedy. We strongly suggest you consult a qualified professional before taking any action based on the information provided in this podcast. The views, opinions, and information provided in this podcast are those of the hosts do not necessarily reflect the official policy or position of any other agency, organisation, employer, or company. All content provided on this podcast is provided “as is” without warranty of any kind. We make no representations as to the accuracy, completeness, currentness, suitability, or validity of any information on this podcast and will not be liable for any errors, omissions, or delays in this information or any losses, or damages arising from its use. We reserve the right to change content or delete any information provided on this podcast at any time without prior notice.

Transcript

E121. When is a building project actually finished?

[INTRO] (0:08 - 0:42)

Hello and welcome to the Building Design, Prime Time Podcast, focused on providing valuable information for anyone looking to undertake a new build or extension project. We'll share our tips, tricks and stories from a building designer's perspective. 

[Amelia]

Hello and welcome to the Building Design, Prime Time Podcast, I'm your host Amelia and once again we're joined by Frank Geskus.

[Frank] (0:42 - 0:44)

Hey Amelia, loving summer at the moment.

[Amelia] (0:44 - 0:46)

It's a ripper out there today.

[Frank] (0:46 - 0:50)

It is sensational, great for Festivale and those who are on the mainland, you're missing out.

[Amelia] (0:51 - 0:52)

Festivale is awesome.

[Frank] (0:52 - 1:18)

Yes, so I'll let you Google it. But we've got an interesting topic today and the question is, when is a building project actually finished? So most people answer emotionally, but not legally.

So this episode is about what actually protects you long term. So there's a few things that you don't know, we're going to try and educate on this to save you some unbelievable pain and cost.

[Amelia] (1:19 - 1:19)

Okay.

[Frank] (1:20 - 1:39)

So common misconceptions. So you paid the builder, in some cases it's a house or reno, they give the keys. It could be a deck, pergola or pool.

Under the contract, there's a thing in there called defect liability period and they've come back. Good builder has come back, fixed up any little problems, sorted stuff out. Sparky's come back, adjusted a few things.

[Amelia] (1:40 - 1:42)

You would have done your final payments, I imagine.

[Frank] (1:42 - 1:51)

Yep, paid them. Yep, yep. Pay your money, happy days, you're using it.

[Amelia]

Yes. 

[Frank]

Got a pool, got an extension, got your lounge room, kitchen, whatever it may be.

[Amelia] (1:51 - 1:51)

Yes.

[Frank] (1:52 - 1:56)

But none of those defined finished under the Tasmanian legislation.

[Amelia] (1:56 - 1:57)

Okay.

[Frank] (1:57 - 2:00)

So they feel finished, but it doesn't feel the same.

[Amelia] (2:00 - 2:05)

So are you saying that handover and completion are two different things?

[Frank] (2:05 - 2:06)

Yes.

[Amelia] (2:06 - 2:06)

Okay.

[Frank] (2:08 - 2:35)

So there's been a few things happen in the industry where people just move in with what's called an occupancy certificate. So we'll get into that a little bit deeper. But this is where people get it wrong.

It applies to new homes, renos, extensions, sheds, pools, decks. Lots of sheds actually. I've had to fix a lot of them.

And I've had it with extensions. Really interesting. So the core assumption is that if it exists, I'm using it, it must be approved.

[Frank] (2:37 - 2:40)

But. 

[Amelia]

But. Here's the but.

[Frank] (2:42 - 3:13)

But…You're loving life, loving the house. It's time to change, time to upgrade. You could be selling it.

You could be refinancing it. Maybe you might have an insurance claim. You might, I don't know, looking to do some more work on the property.

And through those processes, you should go through the council, you go for planning, building, plumbing approvals. The building surveyor does their assessment, but they get all the permits through the council. And the council doesn't have completion certificates for the previous works.

All the works that have been done.

[Amelia] (3:13 - 3:18)

Okay. So the completion certificates come after handover.

[Frank] (3:18 - 3:39)

This thing is like, yep, it's done. It's finished. My plumbing's done.

Everything's done. And it's done to the drawings. It's been inspected.

Everything complies. Now, very important piece of paper. And I bet you very few people have them in their emails or hidden away somewhere.

And I'm guilty of that too.

[Amelia] (3:40 - 3:40)

Okay.

[Frank] (3:41 - 3:48)

But this piece of paper tells you my house or my shed, whatever it is, is all done properly.

[Amelia] (3:48 - 3:49)

Yes.

[Frank] (3:49 - 4:39)

Where it kind of can fall over is through those periods of when you're trying to do more or sell or move. So I've had a couple of instances of dealing with this. So I've had one recently where I went and did an inspection and search for a friend buying a house.

And I go through all the archives, I go to the council, get all the archives back, and there's a big extension at the rear, and I went through. Planning approval. Plumbing drawings, building drawings.

In this case, there was no permit. They started without a building permit. And hence, no completion and whatnot.

So the whole back of the house wasn't completed, but they actually missed a lot of other steps. So, I told this person, don't buy the house. You have to pay to fix that.

[Amelia] (4:39 - 4:41)

Yeah, that's not very good.

[Frank] (4:41 - 5:32)

You have to get compliance. Now, here's your problem. Hang on.

We've got one more story. So another one where a client bought an existing property. All great, wonderful.

But what they didn't know, they bought the illegal works. And we've spoken about illegal works before. Very common.

You're buying someone else's rubbish. So they engaged us to help clean it, sort it, and we did. We went out there, we measured, we got everything, had to do some modifications, checked all the timber sizes, got engineers involved, thermal assessments, all that.

Bang. Got approved. But then the wastewater was a real problem.

So they had an old septic and it wasn't compliant. And the client said, we could have fixed it, dealt for it. Nah, clients said I'll do that.

No worries. So we submitted our drawings for planning approval. They went ahead and got stuff sorted and kind of stopped, stalled, forgot about.

Eleven years later, they're trying to sell it.

[Amelia] (5:32 - 5:34)

Oh no. And they don't have.

[Frank] (5:35 - 6:08)

But they lost track of it. Yes. Because they chose to do it.

I'm not saying, see, it's not the council's responsibility to chase someone up. It's not our responsibility to chase them up if they've decided to do work themselves. It stays open for a period of time, but everything looks like it's happened.

And they thought it all happened, but they didn't follow through. They didn't follow through to the completion. I've also had this with brand new homes, where people have had a new build done, there's been some complications, some changes and whatnot.

They got their occupancy certificate, which means you can move in. It is fine to occupy.

[Amelia] (6:08 - 6:12)

That could be really confusing for someone thinking that that is completion though.

[Frank] (6:12 - 6:20)

That's what they do. Plumbing hasn't been signed off, completion. That means building can't be signed off for completion.

Builders still got paid.

[Amelia] (6:20 - 6:21)

Yeah, they're not going to care.

[Frank] (6:21 - 6:35)

Walked away. So the file stays open for a period of time, and then it closes. They send a letter out, that's about it, we're about to close the file, and people don't understand what it is.

Oh, we're in our house. We've got the keys. I'm paying off my mortgage.

[Amelia] (6:35 - 6:37)

Yep, it's all done. Or so they think.

[Frank] (6:38 - 6:55)

Yes, so then what the reality is, it is not finished, not complete. And if it goes on for too long, they cancel the whole thing. And you're stuck with something that isn't complete, and now, if you have to go fix it now, it has to meet the current regs.

[Amelia] (6:55 - 6:57)

Oh, that could be a problem.

[Frank] (6:57 - 7:17)

So for example, you did in 2015, right? You're up to the National Construction Code that was applied at that time. Fast forward to 2026, you have to comply with the current building code that the state has engaged.

Tasmania, it's NCC 2022. There is potential they'll make you upgrade to that.

[Amelia] (7:17 - 7:18)

Wow.

[Frank] (7:18 - 7:46)

They have every right to do that. And this is where it gets really tricky, and really expensive. So bushfire regs might change, plumbing codes changed, waterproofing's changed, windows have changed.

All this stuff has changed. Thermal performance, all sorts of things. It might have new overlays over to the planning scheme.

This is why it's so critical, and I wanted to do this podcast to explain to people, you get this completion. You don't pay your last payment until you've got a completion.

[Amelia] (7:46 - 7:46)

Yes.

[Frank] (7:47 - 8:11)

Because when time passes, this is going to cost you so much money, and if you're selling the house and you find that, 

[Amelia]

yeah, that's massive. 

[Frank]

And you're going to the next house, yep, no worries, found a house we want, love it, just got to sell our house, no worries, bang. And you get slapped in the face with this.

And potentially you could be four, six, twelve months sorting this out, and tens of thousands of dollars to fix it, potentially.

[Amelia] (8:11 - 8:11)

Wow.

[Frank] (8:12 - 8:19)

It may not be that bad, but I'm just trying to scare people into action to make sure they have these pieces of paper. And you miss out on the sale.

[Amelia] (8:19 - 8:20)

That's right.

[Frank] (8:20 - 9:25)

That's one thing. It could be on a pool, it could be on a shed. It's the same problem.

It could hold up the whole thing. So it wasn't finished and then it was just plain forgotten. You expect other people to do this for you.

So it's builders' responsibility, that's what you're paying them for, to complete your building project when you engage them. So this is interesting why this keeps happening. Because a building designer does their component, we actually organise all the consultants.

That's just the way we operate. We organise all your permits. So then a builder is engaged, gets a contract with the owner, builds it.

Then they have to organise all the inspection, organises all the plumbing inspections. You get the building surveyor, engineers, all that. If you've got a waste water, you've got to get a plumber, you've got to get an environmental health inspection.

If you as the owner step in and try and organise this, you don't know all these regulations. You may not ask for these inspections. So even if you skip an inspection, you're never going to get your completion.

Because when you ask for it, oh this has been missed, we need this inspection report.

[Amelia] (9:26 - 9:26)

Exactly.

[Frank] (9:28 - 9:39)

So don't take on bits, make sure the builder does the whole lot, and his subbies do it, and it's their responsibility. The problem is, the most expensive thing they'll ever say to you is, I thought it was done.

[Amelia] (9:39 - 9:40)

Yeah, that's a problem.

[Frank] (9:41 - 10:03)

And I also want to do a shout out for builders that really do a good job. There are builders out there that will get all this stuff. Their administration is very good.

That is a big key of building, administration, the paperwork, knowing what to do. And you get paid, there's nothing going to cause you a problem. You get your permits, your certificates.

[Amelia] (10:04 - 10:09)

So normally it is the builder that arranges this for you, unless you're someone like us?

[Frank] (10:09 - 10:16)

Yeah, all the inspections and all the plumbing. This is during the build. Because when we're not in construct, so we don't construct.

[Amelia] (10:16 - 10:17)

No.

[Frank] (10:17 - 10:30)

We've had to come in to help some builders and owners. There's been a problem on site. Yep, no worries.

We get in, and we help. We update drawings, do all that type of stuff. That's no issue.

Most buildings fail under administration.

[Amelia] (10:31 - 10:31)

Yes.

[Frank] (10:31 - 10:39)

Because there are stats from the state government where all these building permits, it doesn't match the amount of completion certificates.

[Amelia] (10:39 - 10:40)

Yeah, okay.

[Frank] (10:40 - 11:20)

And it's a big difference. So, the critical authorities you've got to deal with is your building surveyor, or your mainlander's building certifier. I say I like that name a little bit better, building certifier.

Because they do, they certify the house or building, or whatever building works you're doing. The council plumbing department, they are critical as part of this. Because plumbing, if you get it wrong, you can make people sick.

You know, things go wrong, they damage footings, all sorts of things. So the plumbing guys are really important. And they have to do their job really, really well.

So, once they've done their inspection, I've seen plenty of jobs where the building side's all done, and they've had a problem with the plumber.

[Amelia] (11:20 - 11:21)

Oh, really?

[Frank] (11:21 - 11:46)

And the plumber hasn't arranged things, hasn't done, or there's a problem with the plumbing and they won't go back and fix it for whatever reason. This is why when a builder controls a whole lot, he has quality plumbers to make sure they do a great job. And this is why you pay for a quality builder.

Has good subbies, good administration. So, these guys are your legal gatekeepers to make sure that your building stays in compliance, as it was designed.

[Amelia] (11:47 - 11:47)

Yes.

[Frank] (11:48 - 12:24)

So, as I said, building survey inspects the building works, plumbing inspects the plumbing work. Very simple. Without those…

[Amelia]

No completion.

[Frank]

No completion. So, you also remember, it's not for all the small stuff, but like a shed, sounds very simple. Proprietary tin shed.

You know, you buy them everywhere. You still need a plumbing permit, because it collects stormwater, and you still need completion. And I'll bet you there's tons of those that have not been done.

Even the building surveyor has to check the framing. Now, there is a clause in the Tasmanian Regulations, if you're 36 square metres and under and you need a whole bunch of other stuff, that's on a previous podcast.

[Amelia] (12:24 - 12:24)

Yes.

[Frank] (12:25 - 12:33)

You don't need a full building permit. It is a Cat 2 work. But you still need a plumbing permit, because you've connected into the stormwater.

[Amelia] (12:34 - 12:34)

Yes.

[Frank] (12:35 - 12:43)

So, very important, remember that you ask for this at the end of the project and to the point where you withhold the last payment.

[Amelia] (12:44 - 12:46)

Yeah, that's really good advice.

[Frank] (12:46 - 12:55)

If you need to move in early and you get your occupancy and the place is not finished, you're opening yourself up to not having the building completed.

[Amelia] (12:55 - 12:56)

Yes.

[Frank] (12:56 - 12:58)

Because you start doing stuff around the home.

[Amelia] (12:59 - 13:00)

That's exactly right.

[Frank] (13:00 - 13:30)

So, a lot of banks require, you know, loans they require completion certificates too. But that's something that you need to check out with all the financial institutions. I'm pretty sure they do ask for that.

Yeah. It sounds simple, but it gets forgotten a lot. Just remember, builders won't certify owner supplied works.

If the owner chooses to do something, get something else done or organise a separate pool, landscaping, fencing, it's got nothing to do with the builder. It is whatever's in the contract and on the stamp drawings.

[Amelia] (13:31 - 13:31)

Okay.

[Frank] (13:31 - 14:02)

So, my advice is you don't make your final payment until you get your completion certificates. But if you go for occupancy, you're going to mess that up. And I understand sometimes, circumstances, your lease runs out on your rental.

[Amelia]

Yeah, and you're stuck. 

[Frank]

Yeah, job's taking a little bit longer due to supply issues. We spoke about this last time with contingencies.

Supply issues of materials, it could be wet weather, delays the build, nothing goes to plan and then you're forced to move in early, under occupancy and the builder's still working around you. Not ideal.

[Amelia] (14:02 - 14:07)

Yeah, not ideal at all, because you really do want everything finished and wrapped up and completed.

[Frank] (14:08 - 14:53)

Have that piece of paper and you know it's done and then you can move on with your life without any potential anything hanging over you and you don't know it's hanging over you. That's the crazy thing. So, you've got to make sure that everyone does their jobs.

Even check with your bank and stuff to who's doing your finance and what their expectations are. Because you just don't want to get caught with this. Because there's been a couple we've had to fix.

You're getting amendments to your permits. You may have to redesign stuff. Could be things aren't legal anymore under the building code or the plumbing code.

The delays are horrific. The stress is even worse. We've helped people to do that, but you can't understand unless you go through it.

And people who've gone through it, they've learnt the hard way.

[Amelia] (14:53 - 14:58)

And it ends up expensive or could be expensive. 

[Frank]

Stress. 

[Amelia]

And stressful 

[Frank]

Time.

[Amelia]

Time. Exactly. 

[Frank] (15:00 - 15:22)

A lot of people believe, oh it was built years ago. It was done by a builder. It's all good.

Yeah, no. Check and double check. You can just go to the council.

If your name is on the title you can go in Tasmania anyway. I presume any council. If you are the title owner you can go into the council archives and say, can I have a copy of all my permits, drawings and completion certificates.

[Amelia] (15:23 - 15:29)

And I believe we have actually mentioned that before to see if you're going to buy a property that maybe has...

[Frank] (15:29 - 15:38)

[Frank]

You need permission from the title owner to do that. You're dead right. Every time you purchase a property you get as many of the documents as possible.

[Amelia] (15:38 - 15:40)

Yes. Very good idea.

[Frank] (15:40 - 15:46)

Yeah, because I've done that for friends and family and it has highlighted deficiencies.

[Amelia] (15:46 - 15:48)

And it can save you a lot.

[Frank] (15:48 - 15:59)

A lot of headaches. I did one just recently from one of my brothers and had a look at his property and didn't have the original drawings in there but had every completion and all the inspections.

[Amelia] (15:59 - 16:01)

Oh that's good. Very thorough.

[Frank] (16:01 - 16:06)

It was good and the building was still immaculate. It was well looked after.

[Amelia] (16:06 - 16:23)

You have to think too, this is a house. You look at the things, if you compare it to a car when you go buy a car are you going to look at the history, the service history, has it been serviced, has it been looked after? Why would you not do the same due diligence on a house?

[Frank] (16:23 - 16:31)

That is true. But even when it's being built or you've got an extension, you haven't got these final bits. It's like not getting your registration with your car.

[Amelia] (16:32 - 16:32)

Exactly.

[Frank] (16:33 - 16:35)

Would you drive off in a car without registration?

[Amelia] (16:36 - 16:36)

No.

[Frank] (16:37 - 16:38)

Because you can't get insurance.

[Amelia] (16:38 - 16:39)

That's right.

[Frank] (16:39 - 16:53)

What happens if an insurance refuses an insurance claim because something happened in the house and they found out you don't have completion, the plumbing isn't right, this isn't right, this isn't right. Rejected.

[Amelia] (16:53 - 16:55)

Yeah, that's a real problem.

[Frank] (16:56 - 16:57)

Actually I know one and it did have a completion.

[Amelia] (16:58 - 16:59)

Really?

[Frank] (17:00 - 17:22)

Well it's not really funny where a floor waste was shown in the bathroom and for you guys on the mainland, I know it's mandatory in certain states, in Tasmania it's not mandatory to put a floor waste in the laundry, but we do it anyway because it's a very good practice and reduces the damage. Well this build, they didn't put it in because they thought it's not required and they're right, but it was on the drawings. It's part of the contract.

[Amelia] (17:22 - 17:23)

They didn't do it.

[Frank] (17:24 - 17:37)

Guess what? The washing machine flooded and whatnot and it was thousands of dollars of damage, water damage through not just the laundry but through the other rooms as well. And insurance said no.

[Amelia] (17:38 - 17:40)

Because they didn't do what was specified.

[Frank] (17:40 - 17:41)

So it went back to the builder.

[Amelia] (17:42 - 17:42)

Really?

[Frank] (17:43 - 17:45)

And what do you think the builder did? Pass it straight to the plumber.

[Amelia] (17:46 - 17:46)

Yep.

[Frank] (17:47 - 17:49)

Dude, you didn't put this in. You're fixing this.

[Amelia] (17:50 - 17:50)

Yep.

[Frank] (17:51 - 18:01)

Here's your other problem though. If time goes on, who's to say the builder is still in business? Who says the plumber is still in business?

Anyone that's involved is still in business.

[Amelia] (18:01 - 18:04)

That's another really good point. I mean it could have been years ago.

[Frank] (18:05 - 18:13)

Could be 10, 15, yep. Doesn't matter. If they're not there, who can you chase?

You're stuck with it.

[Amelia] (18:13 - 18:14)

That's right.

[Frank] (18:15 - 18:41)

Very sad when that happens. And you can't blame the council. They're just administrative.

They're administrating your build and checking their component that they, under legislation, have to. So with consultants, they move on as well. Say you've got to upgrade the bushfire, you've got to get a whole new bushfire regulation.

And then the thing may not comply and all this type of stuff. So ask yourself, can you locate your building and plumbing completion certificates?

[Amelia] (18:41 - 18:43)

And if you can't, go to the council.

[Frank] (18:45 - 19:12)

Yep go to the council, or if the building surveyor did the work originally, they would have copies in there as well. Yep, so the project isn't just finished, it's just occupied. 

[Amelia]

Yeah, big problem.

[Frank]

It is. So this is not a glamorous topic, it's nothing exciting, but it's really critical. And it makes me sad when I have to come and help people with this, because the stress is ...and I totally get it. So don't ever assume, get the documents.

[Amelia] (19:13 - 19:20)

Get the documents. What a great way to finish. Thanks for listening to the Building Design, Prime Time Podcast.

[Frank] (19:20 - 19:21)

Catch ya’s later.

[OUTRO]

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