Last Updated on 30/03/2026 by Damin Murdock
In NSW and Victorian residential building work, the date of completion is not just a milestone; it is a legal trigger. It starts the clock on your liability for major defects (6 years) and minor defects (2 years). As of 2026, the courts have signaled that “Completion” can occur much earlier than you think, potentially stripping you of your right to sue or leaving you exposed to a termination you didn’t see coming.
1. The Statutory Trap: Section 3B and 3C (NSW)
Under the Home Building Act, completion follows an “earliest date” hierarchy. Even if you are still on-site fixing minor paint chips, the clock may have already started if:
An Occupation Certificate was issued;
You handed over possession; or
You performed the last substantive work.
2. The Termination Failure: Lessons from Kubic and Mardel
Two key cases demonstrate how miscalculating dates or ignoring contract terms can turn a delay into a legal disaster:
The Evidence Failure (Kubic Pty Ltd v Catanese): The owner attempted to terminate for delay. VCAT ruled that because the owner could not prove the exact cause of the delay—and failed to account for owner-requested variations—the termination was void. Applied Lesson: Intent doesn’t matter; forensic evidence of the delay does.
The Repudiation Risk (Mardel Constructions v Sinha): The owner terminated under Section 41 while they were themselves in breach (non-payment). This “wrongful termination” was found to be a repudiation of the contract, making the owner liable to the builder for damages.
3. Protecting Your Position in 2026
Audit the “Completion” Definition: Ensure your contract defines “Completion” specifically. If it only mentions “Practical Completion,” you are at the mercy of the statutory presumptions in Sections 3B and 3C.
Document the Handover: A signed “Handover Certificate” is your best evidence to lock in a completion date and start the warranty clock.
The 1.5x Rule: If you are an owner looking to terminate for delay, you must prove the project has exceeded 1.5x the original time after subtracting every day of builder-justified delay.
How Leo Lawyers Can Help
Building disputes often turn on a single day in the calendar. At Leo Lawyers, we provide the applied legal judgment to forensicially analyze your project timelines and contract terms, ensuring you are protected from “accidental” repudiation or time-barred claims.
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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.
