Defective construction works should be charged to the person who is responsible for it. Issues are unavoidable and can thus cause stress and disappointment along the way. But you should also know that these are just part of the whole construction process. The goal is to oblige the side accountable for the defect to remedy the situation.

Construction contracts generally provide a defects liability period. This part of a contract is intended for rectifying defects.
Building Defects and its Liabilities

Liability for defects can be claimed if the defects fall within the six (6) year period upon the completion date. This is according to NSW Home Warranty Insurance.

Negligence
The contractor, subcontractor, and developer, when employed by building professionals, are required to exercise a reasonable degree of care, skill, and knowledge. Moreover, the contractors are accountable for the negligence of their subcontractors.

Breach of Contract
If there is a breach of contract, homeowners can sue the builder, contract, or anyone who contributed to the construction work. Such breach is because a person failed to comply with the set plans and specifications stated in the construction contract.

Breach of Warranty
Warranty refers to a written guarantee with a specified period of time. Every building contract has implied warranties that are imposed upon the builder and contractor, and they will be held liable for breach of those warranties.
Fraud and Negligent Misrepresentation

Fraud happens when a builder or contractor intentionally misrepresents the quality of construction through false statements. This is when then builder never had any intention of complying with the design plans and specifications.

There is negligent misrepresentation when the builder or contractor represents something as true, when it is in fact, false.

Defects Liability Clause
In a residential building contract, the defects liability clause may also outline:
  • the scope of defects the Contractor is required to remedy;
  • parts of the contract sum retained by the owner as security for the performance of defect rectification work;
  • procedures for notifying the contractor of defects; and
  • if the defects liability can be extended.

Defects Liability Period
The warranty used on contracts for a new house is called the ‘defects liability period’. Generally, the warranty lasts for thirteen (13) weeks for a newly finished house. In some instances, it is better to ask your builder about other important details. The content of the contract when it comes to the period covered can vary depending on the agreement.

A well-written letter may be used to send your other concerns to the builder. Keep the copy as proof of your intent. The contractor has the responsibility to always check that the construction work is free of major defects for six (6) years, starting from the time when the work is completed, and two (2) years for all other defects.

How Contracts Specialist Can Help You

We only work on construction law matters so you can be confident you are getting expert advice. We will go over your construction contract, investigate if a breach has been made, and see where you stand legally. We work on building dispute cases day in and day out, and we have most probably handled a case with similar circumstances to yours.