What to do when things go wrong
When you build or renovate, things may not always go to plan. Common issues that can arise in the building and renovating process include things such as building defects, quality of workmanship or incomplete work that doesn't meet the the requirements set out in your contract.
In every situation, the most important thing you can do is to make sure that you develop and maintain clear, positive communication with your builder or tradesperson as soon as an issue arises. This is the key step to achieving a resolution.
If you have attempted steps to work with your contractor on the issue but you still haven't been able to find the right outcome, Building Commission NSW can help.
We can advise you on how to manage building-related disputes, including:
- incomplete or defective home building work
- damage caused to other structures by home building work (including neighbouring properties)
- specialist work, including electrical wiring, plumbing, gasfitting and air conditioning/refrigeration.
Steps you can take to resolve a dispute
Below is a step by step guide to help you manage issues or disputes about home building, specialist work and trade work.
This guide can be used for disputes related to class 1 buildings (e.g. free standing houses and duplexes), as well as individual lots or units within class 2 residential apartment buildings.
If the dispute is about defective building work that affects common property within a class 2 residential apartment buildings (e.g. a building with a strata scheme), see the intervention on regulated buildings page for specific advice.
Review your contract
Your builder or tradesperson must give you a written contract if the work costs more than $5,000 (including GST).
The contract sets out the requirements for the work as well as details about statutory warranties.
The Consumer Building Guide also contains essential information about your rights when entering a contract.
Talk to your builder or tradesperson
Discuss your concerns with the contractor as soon as you become aware of a problem. It may simply be a misunderstanding that can be quickly resolved through constructive communication.
If your dispute is about the quality of the work, you can refer to the NSW Guide to Standards and Tolerances. The guide will help you understand what standard of work is acceptable. For example, it explains how much shrinkage around timber windows and doors is tolerable.
Write a letter or email
Following your conversation with the contractor, confirm it in writing. Send the contractor a letter or email about what was agreed to be done and by when.
You should:
- date and keep a copy of this correspondence
- consider using registered post or email, which provides proof that the communication was sent.
Contact Building Commission NSW
If you haven't been able to resolve the dispute with your contractor, the next step is to contact Building Commission NSW to assist with dispute resolution.
Either you or the trader can formally request Building Commission NSW to assist, but both parties need to agree to the attempt at resolution.
Builders, developers, owner–builders and tradespeople must ensure that their work has been performed with due care and skill. By law, a home owner, or subsequent purchaser, can enforce these warranties within certain time periods after the work was completed. See the contracts for residential building work page for more information.
Learn more about the time limits for statutory warranties that apply to defective building work.
Notify your Home Building Compensation Fund (HBCF) provider
To safeguard your position under your Home Building Compensation Fund (HBCF).
If you become aware of defective or incomplete work, you must immediately notify your insurer in writing.
The building inspection process for major building defects
In some cases, Building Commission NSW may send a building inspector to your site to determine what action needs to be taken.
An inspection will only be carried out if there is a major building defect.
Non-major defect complaints will be managed with through our issue resolution and advisory service.
The role of a building inspector is to help you and the builder resolve a dispute. In most cases the inspector will arrange to meet with you and your contractor on site to inspect the work under dispute and discuss the issues reported in the complaint.
The inspector will either:
- issue a Rectification Order if there are matters that the contractor needs to rectify, or
- conclude that the builder is not responsible for the alleged defects.
Rectification Orders
A Rectification Order under the Home Building Act requires a contractor for residential building work to take the steps specified in the order to ensure that a defect in residential building work or damage is rectified.
A Rectification Order will:
- list work to be rectified or completed
- outline conditions for both parties to comply with the order
- set a date for the work to be completed.
A staged Rectification Order will specify the stages in which an order must be complied with.
If the order is not complied with, or you are not satisfied with the decision made, you may lodge a claim with the NSW Civil and Administrative Tribunal. If a claim is lodged, the order ceases to have effect and the Tribunal will hear the matter.
It's important to note that Building Commission NSW building inspectors do not undertake a general inspection of the work. They visit the site to look at the specific items implicated in the dispute.
Learn more about the Rectification Orders and the inspection process.
Time limits and statutory warranties
For contracts signed on or after 1 February 2012, the statutory warranty period for major defects is 6 years, and 2 years for all other defects. If loss becomes apparent in the last six months of the statutory warranty period then the home owner has a further 6 months after the end of the statutory warranty period to enforce the statutory warranty.
If you are still seeking compensation or rectification of work that is nearing the end of the statutory warranty period, you can lodge an application with the NSW Civil and Administrative Tribunal.
If the work is outside the statutory warranty period, the Tribunal may not be able to deal with your application. It is the responsibility of the home owner to apply to the Tribunal before the expiry of the statutory warranty period.
Accessing legal services and support
The Home Building Advocacy Service (HoBAS) is a program provided the Western Sydney Community Legal Centre (WSCLC) with funding from Building Commission NSW.
The program offers free legal and social support services to people in need, with a focus on people living in rural and regional NSW who may experience barriers in accessing justice.
HoBAS may be able to provide consumers the following:
- education on rights, responsibilities and actions that can be taken to resolve disputes
- support and advocacy when negotiating disputes with builders or third parties
- legal information, advice and referrals
- legal representation
- assistance in preparing cases for Tribunal hearings
To access HoBAS services, you'll need to first contact Building Commission NSW to complete our dispute resolution process. Our team will be able to provide advice based on your circumstances and make referrals if appropriate.
Video: Managing defective building work
Home owners and builders or tradespeople can work together to resolve issues. This video explains the steps you can take if you discover a problem and how Building Commission NSW can help if the matter isn’t resolved.
