We often get asked the question by clients as to what happens if they discover further defects in their new property after moving in.  Sometimes defects are not evident at the time of inspection for various reasons.  We would like to answer by making this statement:

"The builder is liable to fix all defects that do not comply with the QBCC Standards & Tolerances Guide & relevant standards/installation guides within the maintenance period.  This includes defects identified by a professional inspector or the client at any time within the maintenance period."

Once all contractual items are completed and are deemed fit for use, it is meets the definition of Practical Completion.  At this point outstanding defects need not delay settlement.  However, it is in the clients best interest to discuss the outstanding items and make an agreement on which ones they require to be rectified and include a time frame for them to be rectified.  An inspectors job is to identify items not meeting the standards, hence, all items on the list can be enforced.  If there is a disagreement with the builder in terms of rectifying defects, a complaint can be lodged with the QBCC.

We often conduct 2 inspections on a new building, it is not uncommon for new defects to be added during a second inspection.  Sometimes items have not been rectified satisfactorily or new defects are observed during the second inspection.  It is important to note, having a professional inspection does not waive the defect maintenance period.

It is an exciting time knowing that your new home is nearly ready to handover. But when the big handover date approaches, many home owners are caught unaware of how it all works. We've created a simple guide to ensure that you understand exactly what you are doing...

What is Handover?
A home reaches practical completion or is ready for handover when all the building work has been done and you are able to move in, i.e it is reasonably suitable for habitation. Some minor defects and minor omissions are acceptable. You will find a full definition of practical completion in your contract under general conditions. Make sure you read this before handover day and making your final payment.

Before Handover
Your builder should tell you 2 to 3 weeks in advance of when they expect to do the handover. If you care about the quality of your new home, you should arrange a professional inspection of the home to ensure that all of the defects are identified. Every new home has defects, it is just a matter of finding them and issuing a report to the builder for rectification.

Dealing With Defects
Your inspector will issue you with a report containing a list of defects to be rectified by the builder. It is best that you agree with the builder to have these items rectified before the actual handover day.

Disagreements
You may find in some instances, that you and the builder can’t agree on whether some items are defects. However, if a defects report from your inspector is prepared in accordance with the QBCC standards and tolerances guide, the builder will have no choice but to comply. If they refuse to fix anything, you are within your rights to lodge a complaint to the QBCC about the defective building work.

On Handover Day
Make sure you get copies of any outstanding documents such as:

• the practical completion certificate (for a new home)                    
• certificates of inspection (e.g. slab, frame, waterproofing)
• product warranties for appliances
• reports, notices or other documentation issued by services providers (e.g. electricity, gas, telephone, water or sewerage). Note: If you have any problems with appliances after handover, contact the product supplier not your contractor.

The Final Payment
You can pay the last installment when all contracted work is complete. The work must be in accordance with all relevant laws, legal requirements, and with the plans and specifications.

Some contracts require the builder to provide all certificates of inspection (including the 'final' certificate) before receiving final payment.

What if I find defects after handover?
If you notice any defects after handover that have not been identified previously, you should request in writing that the builder fixes the defect. For non-structural defects you generally have 6 or 12 months (depending on the contract) from when the work was completed. If you find a structural defect, you have 6 years and 3 months from practical completion to lodge a complaint.

6. How many doors do you see in this picture? No... your eyes are not deceiving you, that is actually 4 doors opening onto each other at the same time; 3 timber doors and 1 shower screen door. This is not technically a defect though, more of a poor design.

5. Is something missing here? Where is the 4th fan blade gone? This fan is only operating at 75% efficiency!

4. Every kitchen sink cabinet needs more storage space. That's why plumber Pete has cut out a nice large hole in the base of the cabinet. You can keep all sorts of things in there... detergent, sponges, extra rubbish, cockroaches, mice, anything...!

3. There's nothing like having a warm shower... especially with the screen door wide open. Well that's the idea with this design, you couldn't shut the door even if you wanted to because it is hitting on the toilet!

2. Something just doesn't seem right about this window. Where is the nice view outside? Upon further investigation the the builder has installed cladding on the outside of the building totally covering the window! Must be the modern look.

1. Have a look at this brilliant idea. Stroke of genius by the sparky here! I think this concept will catch on...

Defects are one of the most common causes of disputes in the construction industry. There is often disagreement when it comes to identifying what a construction defect is because of the differing viewpoints and interests of those asking the question and/or making the determination. Therefore we must follow the rules and guidelines that have been put in place by the governing authorities to determine items that do not meet industry standards. To resolve or prevent defects, it is important to engage a quality inspector who is trained in identifying issues.