Members are reminded that residential building work in the ACT is subject to statutory warranties under the Building Act 2004.
Under section 88 of the Act, builders warrant that residential building work will, among other things, be carried out in accordance with the Act, in a proper and skilful manner, and in accordance with the approved plans.
The applicable warranty periods are prescribed by section 38 of the Building (General) Regulation 2008:
The completion day is generally the later of the day the work is completed or the day the relevant building contract ends. However, the work is taken to have been completed no later than the date a Certificate of Occupancy is issued, where one is required.
Members should also be aware that the 2-year and 6-year statutory warranty periods do not necessarily prevent regulatory action after those periods have expired. Under the Construction Occupations (Licensing) Act 2004, the ACT Construction Occupations Registrar has powers to issue rectification orders where construction work does not comply with the relevant legislation. Generally, a rectification order may be made within a 10-year period calculated from the later of the date the act causing the contravention occurred or ended, or the date a relevant certificate was issued for the building.
This means that while a homeowner’s statutory warranty rights may have expired, a builder may still be subject to regulatory investigation or a direction to rectify non-compliant work. The 10-year period is not an extension of the statutory warranty period; it relates to the Registrar’s separate regulatory enforcement powers. The Registrar’s rectification powers can require work to be rectified, demolished, started or completed, depending on the circumstances.
Builders should ensure good records are retained for completed projects, including approved plans, variations, inspection records, product information and photographs of completed work.
If members require guidance on documentation or compliance practices, please don’t hesitate to contact our Advisory Team:
📞 (02) 6175 5900
📧 workplace@mba.org.au
