Understanding Builders Warranty – Your Rights and Remedies

Building or renovating your home is one of life’s biggest investments, and a builder’s warranty provides crucial protection against defects. In Australia, statutory warranties mandate that builders cover major structural defects for six years and non-structural issues for two years. However, this differs from the shorter “defects liability period” in your contract, which typically covers minor issues for 3-6 months after handover.

If you’re dealing with unresolved defects or confused about your warranty rights, this guide will help you understand exactly what you’re entitled to and how to take action.

Dealing with an unresponsive builder can be frustrating and stressful, especially when you’re facing defects in your new home. Here’s how to determine if you have a valid claim and what steps to take.

• Is the issue a genuine defect (not wear and tear)?
• Have you notified the builder in writing?
• Is the defect within the statutory warranty period (6 years for major, 2 years for non-major)?
• Have you provided photographic evidence?
• Have you given the builder reasonable time to respond?

If you’ve ticked all boxes and your builder remains unresponsive, you have grounds to escalate the issue. If the defect falls outside the warranty period or is due to normal wear and tear, your options may be limited to negotiation or seeking independent repairs.

1. Formal Written Communication – Send a formal letter or email to your builder that includes:
   1. A detailed list of all defects
   2. Clear photographs with dates
   3. Reference to the relevant warranty period
   4. A reasonable deadline for response (typically 10-14 business days)
2. Lodge a Formal Complaint – If your builder doesn’t respond within the specified timeframe, lodge a complaint with your state’s building authority:
   1. NSW: NSW Fair Trading
   2. VIC: Victorian Building Authority
   3. QLD: Queensland Building and Construction Commission (QBCC)
   4. SA: Consumer and Business Services
   5. WA: Building and Energy
   6. TAS: Consumer, Building and Occupational Services
   7. NT: Northern Territory Consumer Affairs
   8. ACT: Access Canberra
3. Seek Legal Advice – For disputes involving major defects or significant financial loss, consult a construction lawyer. Many offer initial consultations to assess your case’s strength.

In Australia, builders must fix defects according to statutory warranty periods, not arbitrary timelines.

1. Defects Liability Period (0-6 months post-handover): This contractual period covers minor issues identified immediately after moving in. Builders typically must address these within 20-30 business days of notification.
2. Non-Major Defect Warranty (Up to 2 years): Covers issues like:
   1. Faulty plumbing or electrical work
   2. Non-structural cracks
   3. Poor paintwork or tiling
   4. Defective fixtures and fittings
3. Major Defect Warranty (Up to 6 years): Covers structural issues including:
   1. Foundation problems
   2. Major roof leaks affecting habitability
   3. Structural wall failures
   4. Fire safety system defects
   5. Waterproofing failures in wet areas

Mistake: Only communicating verbally with your builder about defects
Solution: Always follow up verbal discussions with written confirmation via email

Mistake: Waiting until warranty periods are nearly expired to report defects
Solution: Report defects as soon as you discover them, allowing time for dispute resolution if needed

Self-Check: Have you provided your builder with a clear, written list of defects including photos, specific locations, and your requested completion date?

A building defect is any work that fails to meet the standards in your contract or the Building Code of Australia. This distinction is crucial for making valid warranty claims.

Major Defects affect your home’s structural integrity or safety:

• Significant water penetration causing damage
• Major cracks in load-bearing walls
• Foundations settling or failing
• Fire safety systems not functioning properly

Non-Major Defects are issues that don’t meet reasonable workmanship standards:

• Uneven floor tiles
• Paint runs or poor finishing
• Minor plumbing leaks
• Doors or windows that don’t close properly
• Minor cracks in plasterwork

Are Roof Leaks Covered?
Yes, roof leaks resulting from defective workmanship are covered under warranty. Major leaks affecting habitability fall under the 6-year major defect warranty, while minor leaks may be classified as non-major defects with 2-year coverage.

Key Takeaway: Your warranty covers faulty workmanship and defective materials. It doesn’t cover:

• Normal wear and tear
• Damage you’ve caused
• Failure to maintain the property
• Acts of nature beyond normal weather conditions

Real-World Examples of Common Defects:

• Water stains on ceilings (potential roof or plumbing leak)
• Lippage in floor tiles (uneven tile installation)
• Doors binding in frames (poor installation or structural movement)
• Efflorescence on brickwork (moisture penetration issues)

In Australia, builders’ warranties are statutory protections that cannot be contracted away. These warranties are mandated by state legislation and transfer to subsequent property owners.

• Builders (not homeowners) pay for warranty insurance
• It protects you if your builder becomes insolvent or dies
• Coverage limits vary by state (typically $200,000-$340,000)
• Required for residential work above certain thresholds

These warranty periods are set by law, not individual builders. They apply regardless of what’s written in your contract and cannot be waived or reduced.