Building Warranty - What kind of warranty is provided by the builder?

Types of Builder Warranties:

There are two main types of builder warranties: express warranties and implied warranties.

a. Express Warranties:

These warranties are clearly defined and agreed upon by both parties in the building contract. They may cover specific materials, systems, items, workmanship or aspects of the construction process.

It's essential to thoroughly review the terms and conditions of express warranties, as they can vary significantly between builders and projects.

b. Implied Warranties:

Implied warranties are those that are not explicitly stated but are required by law. The two most common implied warranties are the Structural and the Non-Structural warranties.

The Domestic Building Contracts Act governs residential building projects in Australia. However, the specific regulations and warranty periods may vary depending on the state or territory in which the building project is undertaken.

i - Structural Warranty:

A structural warranty usually covers major structural components of the building, such as:

- Foundation systems

- Load-bearing walls and partitions

- Roof framing systems

- Beams, columns, and other structural supports

- Slabs and other load-bearing elements

The duration of the structural warranty depends on the specific state or territory's regulations. For example, in the State of Victoria, the warranty period for structural defects is six years from the date of the occupancy permit or certificate of final inspection.

ii - Non-Structural Warranty:

Non-structural warranties generally cover defects in workmanship and materials that are not related to the building's primary structural components. This may include:

- Plumbing and electrical systems

- Heating, ventilation, and air conditioning (HVAC) systems

- Windows, doors, and cabinetry

- Flooring, tiling, and other finishes

- Fixtures and fittings, such as lighting and bathroom accessories

The warranty period for non-structural items typically ranges from one to two years, depending on the state or territory's regulations.  In the State of Victoria, the warranty period is two years from the date of the occupancy permit or certificate of final inspection. 

How to Make the Most of Your Builder Warranty:

To ensure that you get the most out of your builder warranty, consider the following tips:

1. Read and understand the warranty terms: Familiarise yourself with the specifics of your warranty, including what is covered, the duration of coverage, and any exclusions or limitations.

2. Document everything: Keep detailed records of any issues or defects that arise, including photographs, dates, and descriptions. This documentation will be invaluable in the event of a warranty claim.

3. Communicate with the builder: Maintain open lines of communication with your builder and promptly report any concerns or defects. You must notify the builder for any issues as early as possible for prompt rectification and prevent small problem escalate into a major problem.

4. Perform regular maintenance: Proper maintenance of your home can help to prevent issues from arising and ensure that any warranty claims are not denied due to neglect or improper upkeep.