Home Building Disputes in Australia: What to Do When a Builder Gets It Wrong
Last updated: June 2026
Statutory Warranties on Building Work
In most states, residential building work is covered by statutory warranties that cannot be contracted out of. These generally require that work:
- Is done with due care and skill
- Uses materials that are suitable and supplied with care
- Is in accordance with the plans and specifications in the contract
- Results in a dwelling reasonably fit for occupation
The warranty period varies by state and defect type:
| State | Structural defects | Non-structural defects |
|---|---|---|
| NSW | 6 years | 2 years |
| VIC | 10 years (major) | 2 years (non-structural) |
| QLD | 6 years 6 months | 6 months |
| WA | 6 years | 6 months |
Common Building Disputes
- Defective work (cracks, water ingress, structural issues)
- Incomplete work
- Delays to completion
- Variations and unexpected costs
- Contractor abandons the job
Home Warranty Insurance (Home Building Compensation)
In most states, licensed builders must take out home warranty insurance (sometimes called home building compensation insurance or domestic building insurance) for projects over a threshold value (e.g. $20,000 in NSW).
This insurance pays out if the builder:
- Dies, disappears, or becomes insolvent
- Has their licence suspended or cancelled after a tribunal order
It is usually a last resort: you typically need to pursue the builder directly first.
How to Resolve a Dispute
- Notify the builder in writing of the defect or breach
- Allow time to rectify: most contracts and legislation require this
- Seek an independent building inspection to document defects
- Apply to your state tribunal (NCAT in NSW, VCAT in Victoria, QCAT in Queensland)
- Claim on home warranty insurance if the builder is insolvent or licence cancelled
Licensing
Only use licensed builders for residential construction in Australia. Licensing requirements vary by state but engaging an unlicensed builder may void warranty protections. Check your state's building authority (NSW Fair Trading, VIC Building Authority, etc.) to verify a builder's licence.