Occupation certificate

In NSW, building work under a development consent typically needs a construction certificate before work starts and an occupation certificate before anyone moves in. The principal certifier, either a council or a registered private certifier, carries out the mandatory inspections during construction and issues the occupation certificate at the end.

There are two types. An interim occupation certificate lets part of a building, or the whole building, be occupied before every condition is satisfied, as long as it is safe and suitable. A final occupation certificate is issued when all the relevant conditions are met. Occupying a building without the required certificate is an offence.

For residential apartment buildings, extra requirements apply under the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020, including notifying the NSW Building Commission ahead of applying for an occupation certificate. Check the current notice period with the regulator.

The certifier needs evidence that the building is complete enough to occupy safely and that the consent conditions relevant to occupation are met. Typical items include:

• Fire safety certificate. Confirms each essential fire safety measure has been installed and assessed.

• Compliance certificates. From specialists for structure, waterproofing, glazing, mechanical services and similar.

• Consent conditions evidence. Proof of conditions tied to occupation, such as landscaping, BASIX commitments or works in the road reserve.

• Mandatory inspection records. Confirmation that every critical stage inspection was done.

• Work as executed information. Some councils and authorities want as-built or WAE drawings and certificates for stormwater and services.

Missing paperwork, not unfinished building work, is the most common reason an occupation certificate is delayed.

Every state and territory has a similar approval, but the name and process differ:

• Victoria. Occupancy permit under the Building Act 1993, issued by the relevant building surveyor. Some minor work gets a certificate of final inspection instead.

• Queensland. Certificate of classification for Class 2 to 9 buildings under the Building Act 1975. Houses and Class 10 structures generally get a final inspection certificate.

• Western Australia. Occupancy permit under the Building Act 2011, issued by the permit authority.

• South Australia. Certificate of occupancy under the Planning, Development and Infrastructure Act 2016.

• ACT. Certificate of occupancy issued under the Building Act 2004.

• Tasmania and Northern Territory. Occupancy permit (Tasmania may also issue a certificate of completion).

Across all states the idea is the same: an independent certifier or building surveyor confirms the building is fit to occupy before people use it.

These are often confused because they happen around the same time. Practical completion is a contract milestone between the principal and the contractor. It ends liquidated damages exposure, usually starts the defects liability period and often triggers release of part of the security.

An occupation certificate is a statutory approval from the certifier. Many NSW contracts make an occupation certificate a precondition of practical completion, so a late certificate can mean late practical completion and liquidated damages. Check how your contract defines practical completion.