Owners of newly-constructed homes should not delay if they are concerned about defects in the building work, as time limitations apply to making claims against the builders.
Building a home is likely to be one of the most significant financial investments of your lifetime.
The Home Building Act 1989 (NSW) ensures that builders are required to comply with construction standards and codes when carrying out residential building work. Where these standards are not met, and defects in building work arise, homeowners have the ability to make a claim for the repair of works.
Specifically, warranties apply to residential building work that provide homeowners protection against defective works. These warranties include that the work is done with due care, utilises suitable products and is fit for the purpose for which it is constructed.
When considering how these protections apply, it is important to determine whether a building defect is a ‘major’ or ‘minor’ one. A ‘major’ defect is one which, because of defective supplies, design, or workmanship, may cause or is likely to cause an inability for the building to be used for its intended purpose, destruction of the entire or part of the building, or threatens to collapse the building.
There are also products, designs or defects prescribed by Australia regulations to be ‘major’ defects. These include foundation, footings, floors, walls, roofs, columns, beams, fire safety systems and waterproofing designs.
‘Minor’ defects are any or all defects not declared ‘major’ at law.
Limitation deadlines apply to defects claims, which makes the assessment of whether a defect is ‘major’ or ‘minor’ very important when considering if a homeowner is able to bring a claim for rectification of that defect.
For ‘major’ defects claims, a homeowner is generally required to commence the claim within six years of the relevant work’s completion. For ‘minor’ defects claims, the relevant timeframe to commence a claim is generally within two years of the work’s completion.
Therefore, it is best practice for homeowners to promptly seek legal advice in relation to defective building work as commencing a claim out of time, or after the limitation periods described above have passed, can mean that the claim is ultimately unsuccessful, and a builder will not be required to rectify defects.
If you are concerned about your new home build or renovation, begin the process by phoning on Freecall 1800 681 211 for a consultation, or use our 'Ask a Question' tool on our website.