What is defective work?

The QBCC Act describes defective building work to include work that is faulty or unsatisfactory. Faulty and unsatisfactory are used in their regular sense. Examining the quality of the work may require additional assistance. Any construction which fails to comply with the Building Act 1975, the Building Code of Australia, or an applicable Australian Standard can be deemed as defective work.

The work involves the use of a manufactured product which has been used, assembled, or fitted in a manner that is not consistent with the recommended guidelines issued by the product's manufacturer.

The Queensland Building and Construction Commission does not have to detect non-compliance with the Building Act 1975, National Construction Code, or manufacturer's advice to prove building work is defective. When signs of defects are present but the root cause is unknown, the construction work might be deemed to be faulty and could lead to a directive for correction.

Types of defective work

Time frames in which we can assist you will depend on whether the defect is structural or non-structural.

Defects usually fall into 1 of 2 categories:

CATEGORY 1 - Structural defects

Structural defective building work refers to faulty or unsatisfactory building work (other than residential construction work causing subsidence) that meets one or more of the following criteria.

  • adversely affects the structural performance of a building
  • adversely affects the health or safety of persons residing in or occupying a building
  • adversely affects the functional use of a building
  • allows water penetration into a building.

CATEGORY 2 - Non-structural defects

Non-structural defective building work refers to building work (other than structural defective building work or residential construction work that leads to subsidence), which is faulty or substandard. The construction or finish does not conform to the professional standards expected of a contractor with the relevant license.

There is a settling in period defect in the newly constructed building.

Defect Tiers

Tier 1 defective work refers to work that does not meet the standard that is typically required of a licensed contractor for the specific building work and must meet one of the following criteria:

  • The structural performance of the building has been detrimentally impacted to the extent that substantial reconstruction or demolition would be necessary in order for it to fulfil its intended purpose.
  • Conditions that endanger a person's life or health (e.g. inadequate fire protection) are present.

What obligations do I have prior to lodging a complaint?

It is advisable to submit your complaint promptly. This time frame must be followed.

The deadline for lodging a claim under the Queensland Home Warranty Scheme for structural defects is three months from the time of noticing the defect.

A claim under the Queensland Home Warranty Scheme for non-structural defects must be submitted within 7 months after the work has been completed, and any defect must become apparent within 6 months of substantial completion, and;

A request for direction to rectify incomplete work, or consequential damage must be made within 12 months of it being identified.

Examples of defects

The QBCC produces a Standards and Tolerances Guide for building contractors and consumers to refer to when determining defects in building standards and quality.

You can download a copy of the guide below:

Click here to download the QBCC Standards and Tolerance Guide

This guide focuses on the construction work defined by the Act and does not cover electrical work which is regulated by the Electrical Safety Office.

The guide specifies that gutters are deemed defective if more than 10mm of water is retained in them, and for floor and wall tiling within the first 12 months, tiles will be considered defective if they are cracked, pitted, scratched or loose unless the cause can be attributed to external factors beyond the contractor's control.

Consequential damage

A building contractor may be responsible for repairing consequential damage that is the result of defective building work.

According to the Act, consequential damage is defined as damage resulting from building work performed at a residential property, regardless of any actions taken by the person performing the work. Damage may include:

  • the impairment of drainage;
  • the undermining of a fence, retaining wall or other boundary structure;
  • the compromising of the structural integrity of a building, swimming pool, or wall;
  • the cracking, lifting or cratering of a driveway or path;
  • water penetration; and
  • termite infestation.

The ‘defects liability period' and how it works

Experienced builders and contractors are typically familiar with the term 'defects liability period', which is often used in construction contracts. The defects liability period is a time frame outlined in the contract, during which a contractor must repair any defects to their work that have appeared after completion of the project.

A defects liability period typically begins when the project is practically complete or upon achieving standard completion.

A contract will indicate the duration of the defects liability period. Generally, a duration of 6 to 12 months is common, though longer or shorter periods may occur as well.

The length of the defects liability period varies based on the scope of work, type of construction, and potential for latent defects. Contracts for more complex builds and government contracts often have a defects liability period that is greater than standard domestic building contracts.

Why specify a defects liability period in a contract?

The defects liability period provides clarity for both parties regarding the process of remedying any discovered defects after practical completion.

A defects liability period can be used to address any issues with the build that are apparent at practical completion but are difficult to resolve while other contractors and trades are present.

It is often sensible to engage the contractor who completed the original work to correct any defects, as they will be familiar with the property and task. This approach is likely the most cost-effective for any rectification work.

A contractor may want to be the only authorised party to do any repairs within a certain time frame as quality of work and follow-up repairs could affect their reputation.

Once a defect is fixed does a new period restart?

The duration of any defects liability period after rectification work is complete will be determined by the terms of the construction contract.

It is essential for the home owner and contractor to have clarity on this issue before signing a contract.

9 Questions and Answers about defective building work

Now we have explained some background about what a defect is and the types of defects here are 9 questions answered about what is defective building work in new residential construction.

  • What are common examples of defective building work in residential construction?
  • What are the legal responsibilities of builders and contractors when it comes to defective building work?
  • What are the consequences of defective building work for home owners?
  • How can home owners identify and report defective building work?
    What is the process for resolving disputes related to defective building work?
  • How long do home owners have to report defective building work after construction is completed?
  • What are the potential costs associated with rectifying defective building work?
  • How can home owners protect themselves from defective building work?
  • What role do building inspectors play in identifying and addressing defective building work?

Question 1: What are common examples of defective building work in residential construction?

Some common examples of defective building work in residential construction include:

  • Cracked or uneven foundations
  • Leaking roofs or walls
  • Poorly installed or inadequate insulation
  • Faulty electrical wiring or fixtures
  • Poorly installed or inadequate plumbing
  • Incorrectly installed windows and doors
  • Uneven or poorly laid flooring
  • Poorly finished walls and ceilings
  • Inadequate ventilation or air conditioning
  • Non-compliance with building codes and regulations

Builders and contractors have a legal responsibility to ensure that any work they do is performed to a reasonable and expected standard. This includes complying with all building codes and regulations, using appropriate materials, and using competent and qualified tradespeople.

If a builder or contractor fails to meet these responsibilities and defective building work results, they may be liable for damages. Home owners may be able to seek compensation for the costs of repairing or rectifying any defects, as well as for any other losses they may have suffered as a result of the defective building work.

In some cases, builders and contractors may also be subject to fines or other penalties for non-compliance with building codes and regulations.

Questions 3: What are the consequences of defective building work for home owners?

The consequences of defective building work for home owners can be significant. Defective building work can not only result in costly repairs and rectification, but it can also impact the safety and liveability of the home.

Serious defects can pose a risk to the health and safety of occupants, and may even require the home to be vacated while repairs are carried out. Defective building work can also impact the value of the property, making it more difficult to sell or refinance in the future. Home owners may also experience stress and inconvenience as a result of dealing with the defects and trying to get them resolved.

Question 4: How can home owners identify and report defective building work?

Home owners can identify and report defective building work by conducting regular inspections of their property and looking out for any signs of defects or faults. It is important to keep detailed records of any defects or issues that arise, including photographs and written descriptions.

Home owners should also report any defects to their building supervisor or contractor as soon as possible, and in writing, so that there is a record of the complaint. It is also advisable to take a photo of any defect to accompany your written advice to your contractor. If the builder or contractor fails to respond or address the defect, home owners may need to escalate the matter to the relevant regulatory authority or seek legal advice.

The process for resolving disputes related to defective building work can vary depending on the nature and severity of the defects, as well as the state in which the property is located. In some cases, home owners may be able to negotiate a resolution with their builder or contractor through mediation or other alternative dispute resolution processes. I

n other cases, formal legal proceedings may be necessary. Home owners should seek legal advice early in the process to ensure that they understand their rights and options.

Question 6: How long do home owners have to report defective building work after construction is completed?

The time limit for reporting defective building work after construction is completed can vary depending on the state, the type of contract used and the nature of the defect. In some cases, there may be a specific time limit set out in the contract or building warranty.

In other cases, the time limit may be determined by the applicable statute of limitations. It is important for home owners to be aware of any time limits that apply to their situation and to report any defects as soon as possible.

Question 7: What are the potential costs associated with rectifying defective building work?

The potential costs associated with rectifying defective building work can vary depending on the nature and severity of the defects, as well as the extent of the required repairs.

Minor defects may only require relatively simple and inexpensive repairs, while more serious defects may require extensive and costly re-mediation. Home owners may also incur additional costs such as legal fees, expert reports, and alternative accommodation while repairs are carried out.

It is important for home owners to understand the potential costs associated with rectifying defects and to seek professional advice to help them assess their options.

Question 8: How can home owners protect themselves from defective building work?

Home owners can protect themselves from defective building work by taking a number of proactive steps, including:

  • Conducting thorough research before choosing a builder or contractor
  • Checking the builder's or contractor's license details and speak with past customers who had positive and negative experiences - understand why they did.
  • Ensuring that the builder or contractor is properly licensed and insured
  • Including detailed specifications and requirements in the building contract
  • Ensuring the contract is properly set out, is clear and you understand what you are signing before you sign.
  • Conducting regular inspections during and after construction
  • Keeping detailed records of any defects or issues that arise
  • Reporting any defects to the builder or contractor as soon as possible, and in writing
  • Seeking legal advice if necessary

Question 9: What are some common types of defects in residential construction?

Some common types of defects in residential construction include:

  • Structural defects, such as foundation issues, framing problems, or roof failures
  • Plumbing defects, such as leaks or poor drainage
  • Electrical defects, such as faulty wiring or inadequate lighting
  • Waterproofing defects, such as shower leaks or inadequate sealing
  • Finishing defects, such as cracking or peeling paint, plasterboard defects or uneven flooring (lipping, evenness of gaps, flatness of floor).

It is important for home owners to be aware of these common types of defects so that they can be vigilant in identifying and reporting them.

Conclusion

Defective building work can have serious consequences for home owners, including costly repairs, impacts on safety and liveability, and potential legal disputes.

It is important for home owners to be aware of their rights and obligations when it comes to defective building work, and to take proactive steps to protect themselves, such as conducting thorough research before choosing a builder or contractor, conducting regular inspections during and after construction, and reporting any defects to the builder or contractor as soon as possible.

By being vigilant and proactive, home owners can help ensure that their homes are safe, liveable, and free from defects.