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Defects liability period: running a new building’s first two years

The first couple of years in a new building are when defects show up and when getting them fixed by the builder is most straightforward. A clear record of every defect, from report to repair, is what protects the owners.

MYBOS tracks defects, inspections and repairs for new buildings from handover onwards.

Example new building

Defect register, month 9

5 items
  • Balcony membrane leak, level 6

    Reported to builder with photos

    With builder
  • Cracked tiles, lobby

    Repaired by builder, signed off

    Closed
  • Intercom fault, entry 2

    Logged, awaiting builder attendance

    Open
  • Garage door noise

    Inspected, builder notified

    With builder
  • Paint touch-ups, corridors

    Scheduled before the period ends

    Planned
Every defect logged with photos, dates and who was told.

What is the defects liability period?

It is a set period after completion during which the builder is responsible for fixing defects in their work.

The length is set by the building contract, and it is commonly somewhere between 12 and 24 months. Separately, state laws give owners statutory warranties that can run longer for certain defects. In NSW, for example, home building law provides longer warranty periods for major defects than for other defects.

The contract and the law work side by side, and the details vary by state and project. Owners corporations should get advice on their specific position.

This page is general information, not legal advice.

What should a new building track during the period?

Every defect, with enough detail that a builder or an adviser can understand it months later.

  • What and where a clear description and the exact location
  • When the date it was first reported
  • Evidence photos and inspection notes
  • Who was told when the builder was notified and how
  • What happened attendance, repairs and sign-off, or why it is still open

Why does the record matter so much?

Because when a defect is disputed, the owners with the better record are in the better position.

Defects reported by email to whoever happened to be on the committee at the time are hard to piece together later. A single register, kept in the building's system, shows exactly what was reported, when and what the builder did about it. It also makes the handover between committees and managers much easier.

How does MYBOS help during the defects liability period?

Defects are logged and tracked like any other job, with the evidence attached.

Defects can be logged as cases with photos and locations, linked to the affected asset, assigned and followed up until they are closed. Inspections record condition with photos, and every action is time-stamped. For the defect workflow in detail, see our building defect management software page. For setting a building up at the start, see our building handover checklist.

“It is a complete toolkit to run our building affairs as soon as it is commissioned.”

Tim Campbell, Project Director, Lendlease

Rated 4.3 out of 5 on Capterra, GetApp and Software Advice, and trusted by over 200 organisations.

New and large buildings on MYBOS

See how MYBOS tracks defects in a new building

Tell us about your building and where it is in its first years. We'll show you how MYBOS keeps the defect record.

If you go ahead, our Australian team helps set up your buildings and bring your records across, and your managers get free training through the MYBOS Training Academy.

Book your demo

No obligation. We'll be in touch to find a time that suits.

Prefer to talk? Email sales@mybos.com or call +61 2 8378 1096.

Defects liability period questions, answered

How long is the defects liability period?

It is set by the building contract and is commonly between 12 and 24 months from completion. Statutory warranties under state law are separate and can run longer for some defects. Check the contract and get advice for your building.

Who should report defects to the builder?

Usually the owners corporation, through the strata manager or building manager, reports defects in common property. Owners report defects inside their own lots. Keeping all reports in one register avoids gaps and duplicates.

What evidence should we keep?

A clear description, the location, photos, the date it was found, the date the builder was told and any inspection or contractor reports. The more complete the record, the easier it is to follow up.

What happens when the period ends?

Defects that were reported during the period should still be followed through. Statutory warranties may also continue to apply for some defects. Many buildings arrange an inspection before the period ends to catch anything outstanding.

Is this legal advice?

No. This page is general information. Defect rights depend on the contract, state legislation and the facts of each case, so owners corporations should speak to their strata manager and a qualified adviser.