Statutory warranties for residential building works

The Master Builder’s Association of the ACT (MBA) received a number of calls from members regarding their obligations to rectify defects to residential building work following practical completion.

What does the Contract say

The MBA ACT Home Building Contract at Clause 26 requires a Builder to rectify minor defects and/or minor omissions within 15 days after receiving notice to do so from the Owner. This is known as the maintenance liability period and commences for a period of 90 days following practical completion, unless otherwise specified in the contract.

What does the law say

The statutory warranty period for residential building work is set out in Section 38 of the regulations published under the Building Act 2004 (ACT) and differentiates between structural and non-structural defects:

1. for residential building work in relation to a structural element of a building—6 years after the completion day of the work; or
2. for residential building work in relation to a non-structural element of a building—2 years after the completion day of the work.

Despite these statutory warranty periods, the Construction Occupations (Licensing) Act 2004 (COLA) gives the Construction Occupations Registrar the authority to issue rectification orders against an entity for up to 10 years after the non-compliance occurred. Rectification orders may be issued if the Registrar believes on reasonable grounds that the licenced entity provided a construction service that does not comply with the COLA or an operational Act.

If you need have any questions regarding your liability, please reach out to our Workplace Relations and Legal Team on (02) 6175 5900.