Last Updated on 31/07/2026 by Damin Murdock
Defective building work can be financially draining and stressful for owners. If you notify the builder of these defects, how long does it legally have to fix them after being notified? The law doesn’t specify a single one-size-fits-all deadline. The timeframe depends on contract terms, the severity of the defect, and the state’s statutory warranties.
In this article, we explain your rights as an owner, standard timelines, and the consequences of a builder missing their deadline.
Standard Rectification Timeframes
Usually, the timeframe for builders starts the moment they receive a formal written defect notice; however, the exact timelines should be specified in the building contract. Standard industry templates like the HIA or MBA contracts generally enforce the following defect liability periods:
Generally speaking, when issuing or responding to defect notices, rit should be done formally and not by a telephone call or text message and the defect is unlikely to be clearly explained, and the method to remedy that defect is also likely to be unclear. It is miscommunication that often results in a dispute later. A formal, written defect notice in accordance with the provisions of the building contract, is the way to start holding the builder accountable to a specific timeline, and pursuant to the building contract, there is also normally a formal procedure for the building to accept or reject a defect.
What if the contract is silent?
If the building contract doesn’t specify a rectification timeline, the law implies that the builder must rectify within a “reasonable time”. Since “reasonable” is a subjective term, courts and tribunals evaluate it according to three main factors:
- The severity and urgency of the defect
- Whether the property owners provided the builders and their subcontractors adequate access to the site during working hours. If the owner delays or blocks access, then then owner has not mitigated its loss and damage, and the builder may not be held responsible for not remedying the defect where the owner has not allowed the builder to remedy same.
- If there was any supply chain constraints like material shortages or severe weather conditions, then this may also justify a longer period of time to remedy a defect.
Structural vs. non-structural defects
There’s a difference between a builder’s immediate contractual obligation to repair an item and the broader statutory warranty period during which owners are allowed to lodge claims.
These statutory periods vary by state, but, generally, major and structural defects are covered by a 6-year statutory warranty, and minor or non-structural defects are typically covered by a 2-year statutory warranty.
Consequences of a builder failing to rectify in time
If the builder was given proper notice and still misses the rectification deadline, owners can normally issue a formal notice of its intention to terminate the contract if the default is not remedied within a certain period of time specified in the building contract. This constitutes a final notice detailing the outstanding items, referencing the relevant breached clauses and providing a final definitive deadline.
If the builder refuses or fails to perform the rectification work, owners may have a right to terminate the building contract on grounds of the builder not complying with the notice of intention to terminate the contract. In these circumstances, where the contract is terminated, the owner may be entitled to engage third parties to rectify the defects, and then bring a claim against the builder for the costs of undertaking those repairs.
It is important to note that oftentimes it comes down to whether the owner or builder properly terminated the contract, because if the owner wrongfully terminated the contract, it may not have any claim against the builder. It is therefore important that you obtain legal advice before issuing the notice of intention to terminate or terminate the contract, because getting it wrong can be a costly mistake.
If the builder doesn’t perform the work due to death, disappearance or insolvency, owners can lodge a claim under the state’s residential builder’s warranty insurance scheme (iCare in NSW or VMIA in Victoria) to cover the costs of rectification.
Understanding your contract and the legal expectations around defect rectification is key to resolving building issues efficiently. If you need tailored legal advice, 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.
