If you identify defects in your newly built home, consider the following steps:

1. Document the Defects: Take detailed notes and photographs of the issues.
2. Review Your Contract: Understand the defect liability period and the builder's obligations.
3. Notify the Builder: Provide written notice to the builder, detailing the defects and requesting rectification.
4. Seek Mediation: If the builder is unresponsive, contact Domestic Building Dispute Resolution Victoria (DBDRV) for assistance.
5. Legal Action: As a last resort, consider applying to the Victorian Civil and Administrative Tribunal (VCAT) for a resolution.

Addressing defects promptly ensures your rights are protected and facilitates timely repairs.

Domestic Building Dispute Resolution Victoria (DBDRV) is a free government service that assists homeowners and builders in resolving disputes related to domestic building works. It offers conciliation services to address issues such as construction defects, contract breaches, and payment disputes. Engaging with DBDRV can lead to legally binding agreements, helping parties avoid lengthy and costly legal proceedings.

Common building defects include:

• Structural Issues: Cracks in walls, foundation problems, and roof defects.
• Waterproofing Failures: Leaking balconies, bathrooms, and basements.
• Electrical Faults: Non-compliant wiring and inadequate safety measures.
• Plumbing Deficiencies: Leaking pipes and poor drainage systems.
• Finishing Flaws: Poor paintwork, uneven flooring, and defective tiling.

Identifying and addressing these defects early can prevent further deterioration and additional costs.

The defects liability period is a specified timeframe after the completion of construction during which the builder is obligated to rectify any defects that arise. In Victoria, this period typically ranges from 3 to 12 months, depending on the contract terms. During this time, homeowners should report any issues to the builder for prompt resolution. Addressing defects within this period ensures that the builder fulfills their contractual obligations without additional cost to the homeowner.

Homeowners in Victoria are protected by several statutory warranties under the Domestic Building Contracts Act 1995, ensuring that:

• Work is performed in a proper and workmanlike manner.
• Materials used are good and suitable for the purpose.
• The work complies with all legal requirements.
• The work is completed within the stipulated time.

These warranties provide a legal framework for homeowners to seek rectification or compensation for defects.

The Victorian Civil and Administrative Tribunal (VCAT) adjudicates building disputes that cannot be resolved through mediation or conciliation. It provides a less formal and more accessible forum than traditional courts, handling cases related to contractual issues, defective workmanship, and payment disputes. VCAT's decisions are legally binding, offering a definitive resolution to building conflicts.

In Victoria, the Limitation of Actions Act 1958 stipulates that claims for building defects must be initiated within:

• Six Years: For structural defects.
• Two Years: For non-structural defects.

These periods commence from the date the defect becomes apparent. Timely action is crucial to ensure legal recourse remains available.

Termination of a building contract due to defects is a serious step and is generally permissible if:

• The defects constitute a substantial breach of contract.
• The builder fails to rectify defects within a reasonable timeframe after being notified.

It's advisable to seek legal counsel before proceeding, as improper termination can lead to further legal complications.

To resolve contractual disputes with builders in Victoria, follow these steps:

1. Direct Communication: Discuss the issue with your builder to seek an amicable resolution.
2. Formal Notification: If unresolved, provide a written notice detailing the dispute and desired outcome.
3. Engage DBDRV: Apply to Domestic Building Dispute Resolution Victoria (DBDRV) for free conciliation services.
4. Seek Legal Advice: If conciliation fails, consult a legal professional for guidance.
5. Apply to VCAT: As a last resort, lodge a claim with the Victorian Civil and Administrative Tribunal (VCAT) for a binding decision.

Following this structured approach can lead to a fair and efficient resolution of disputes.

In Victoria, builders are required to obtain Domestic Building Insurance (DBI) for projects over $16,000. This insurance protects homeowners if the builder cannot complete the work or rectify defects due to death, insolvency, or disappearance. Coverage includes:

• Up to $300,000 for structural defects for six years.
• Up to $300,000 for non-structural defects for two years.

Homeowners should receive a copy of the insurance certificate before work commences. It's important to note that DBI is a last resort insurance; homeowners are expected to first seek rectification directly from the builder. For more information, visit the Victorian Managed Insurance Authority (VMIA) website.