Defects lists in Australia: practical completion and statutory warranties
Australians understand "snagging", but on site the document is usually a defects list, produced at a practical completion inspection (PCI). Home buyers often hire an independent building inspector for it.
Practical completion
Practical completion is the point where the work is finished except for minor defects that do not stop it being used. Under the common Australian standard contracts it triggers the start of the defects liability period, the release of part of the security, and handover. The builder will want it signed quickly; you should not sign until the defects list is attached.
See the practical completion checklist for what to look at.
The defects liability period
On commercial and contracted work, the defects liability period (DLP) is set by the contract — 12 months is common. During it the builder must return and fix defects you notify. The rest of the security is released at the end. The DLP is a contractual right to have things fixed; it does not cut short the builder's liability under the general law. More in the defects liability period, explained.
Home owners: statutory warranties
Every state and territory adds its own statutory protection for residential work. Two examples:
New South Wales
The Home Building Act implies statutory warranties into every residential building contract. Proceedings must generally be started within six years for major defects and two years for other defects. If a defect appears in the last six months of either period, there is extra time. For strata buildings the clock is tied to the occupation certificate.
Queensland
The Queensland Home Warranty Scheme covers structural defects for six years and six months, and non-structural defects for a much shorter window — typically 12 months from completion. That short window is why a thorough inspection at handover matters so much.
Victoria, Western Australia, South Australia and the territories each have their own rules and time limits. Check the regulator in your state.
What a good Australian defects list includes
- A clear split between major and minor defects — it decides which time limit applies.
- Each item located, photographed and dated.
- A reference to the contract, plans or the relevant standard where the defect is a non-compliance.
- Written notice to the builder, with proof of when it was sent.
This is a general guide, not legal advice. Periods and rules change, and your own contract can add to them — check it, and take professional advice before relying on a deadline.