Last Updated on 31/07/2026 by Damin Murdock
When a new build is incomplete or defective, the builder has a legal obligation to rectify it. This obligation usually stems from the building contract that specifies a defect liability period after practical completion. At Leo Lawyers, we are constantly asked about the steps to take to enforce the rectification works, and in this article we will explain the rights of the homeowner and the builder’s rectification obligations.
The Builder’s Obligation
Across Australia, the law favours allowing the original builder to fix defects. This is known as the primary right or obligation to rectify. Section 48MA of the Home Building Act states that when disputes arise, the Court or NCAT must regard the rectification of defective work by the responsible party as the preferred outcome. This was confirmed by the landmark case Strata Plan No 76674 v Di Blasio, in which the Supreme Court of NSW held that a homeowner must give the builder a reasonable opportunity to rectify the defects before engaging third-party contractors to do so.
Builders are required to complete these repairs with due care and skill, using proper materials and within a reasonable timeframe.
The Rectification Process
Homeowners must follow these steps when dealing with defective building work after the defect liability period:
- Issuing a formal notice outlining the defects, after which the clock starts ticking for the rectification timeline set out in the building contract.
- Upon receiving the default notice, the builder typically has a set period specified in the building contract (often 10 days), to inspect and rectify the defects set out in the default notice. They can either acknowledge the defects and schedule repairs, dispute the claim, or offer commercial settlement or alternative compensation.
- If the builder accepts responsibility, they will coordinate the repairs, either by completing the work themselves or by engaging subcontractors. The rectification work must conform to the original contract specifications and meet the National Construction Code’s standards.
Hiring Third-Party Builders
While the preferred legal outcome is for the original builder to complete the work, it is not always possible. Homeowners may be justified in seeking an alternative if the builder refuses to rectify, the contractual relationship is irreparably brown (e.g. hostility or loss of trust), or if the builder has made attempts to fix the issues, but the work remains substandard. Homeowners can then claim the financial cost required to fix the defects from the original builder.
Homeowners could also escalate to NCAT or go to court to force a resolution. If this happens, courts and tribunals will examine the severity and nature of defects, the builder’s conduct, and the quality of evidence presented.
At Leo Lawyers, we have extensive experience with construction disputes, so if you are seeking legal assistance with incomplete or defective work, feel free to contact Damin Murdock at Leo Lawyers via our website, on (02) 8201 0051 or at office@leolawyers.com.au. Further, if you liked this article, please subscribe to our newsletter via our Website, and subscribe to our YouTube, LinkedIn, Facebook and Instagram. If you liked this article or video, please also give us a favourable Google Review.
DISCLAIMER: This is not legal advice and is general information only. You should not rely upon the information contained in this article, and if you require specific legal advice, please contact us.
Damin Murdock (J.D | LL.M | BACS - Finance) has over 17 years of experience as a commercial lawyer. He helps businesses navigate construction and technology law. Damin has held several big leadership roles, including serving as a director of a national law firm and the Chief Legal Officer for Lawpath.
He has personally helped more than 2,000 startups and small businesses. With over 300 five-star reviews, his clients clearly value his practical advice and simple way of explaining things. Damin has also hosted over 100 webinars that thousands of people have watched to get reliable legal help.
