Current at 22 January 2009
HIA ref no: QFSCON0730
QLD - Final Payment and Handover Procedure
Overview
You have completed the building works under the contract – what do you do next to be paid? If you do
not follow your contract properly then you may compromise your right to get paid quickly or at all.
This information sheet sets out the procedure in the HIA Queensland New Homes and the Alterations,
Additions and Renovations Contract.
Step 1
When you have completed the building works under the contract, you must give your client a Notice of
Completion and a Final Claim and a defects list (if necessary).
Step 2
The client must within 5 days of receiving the notice of completion & final claim pay the amount of the
final claim. The final claim is not due unless a list of defects and incomplete works is prepared and
signed, by both parties as an acknowledgement.
Step 3
You must complete the items on the list that you believe are defective or incomplete. Once these items
are complete you have to give your client a further written notice stating that you have completed the
work.
Step 4
The final payment is payable within 5 days of your client receiving the notice in Step 3. Payment by your
client is not acceptance by your client that there are no defects or incomplete work nor a waiver of any
rights under a statutory warranty. On payment you should give your client possession together with all
keys, certificates and warranties.
Breach of Contract
If your client takes possession before final payment, and without your written consent, then your client is
in substantial breach of the contract. You can elect to either:
 treat your client’s action as a repudiation of the contract and accept it; or
 give your client a notice to remedy the breach of the contract; or
 accept your client’s actions as a request to vary the Building Works to omit that part of the
Building Works not completed as at the date your client takes possession.
You should seek advice before making any election as the consequences and procedures are different
for each option.
Remedies
If your client breaches the contract you have the right to recover damages or exercise any other right or
remedy.
If you are having difficulties with the final payment and handover procedure or if a client has breached the
contract contact HIA on 1300 650 620 and ask to speak to a Workplace Adviser.
For more information call the HIA membership line on 1300 650 620
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