Defects and Liability Report

Building Defects and Liability

Often referred to as a defects or Liability report, contracts that fall between $7500 and $500 000 have the builder liable to make good (at no cost to the client) defects uncovered during an inspection provided they are notified within a 4 month period of practical completion (PCI).

Generally this follows on from a PCI inspection but if a PCI is not done with an inspector, it does not mean a Defects and Liability report cannot be done and relayed on.

Should 4 months not be enough time, often an extension can be applied for provided all parties are okay with that.

The defects liability period applies from ‘practical completion’ which means ‘brought to the stage where the home building work is completed except for any omissions or defects which do not prevent the home building work from being reasonably capable of being used for its intended purpose.

Most home owners don’t know and are often purposely not advised that the onus is on them to contact the builder in writing within the 4 months (or an agreed to time frame) so often this milestone goes past and the inspection never gets done – It is unfortunate if this happens so keep an eye on the time, as 4 months flies by when you are moving in.

The inspection report will capture maintenance issues which once sent to you, can then be sent to the builder.

Many items get inspected with a DLI or Defect Liability

Inspection and some are as follows:

  • Workmanship follows Building Code of Australia and Australian Standards
  •  Roof Cover.
    • Ridge cap,
    • Valleys,
    • Flashing,
    • Gutters,
    • Down pipes,
    • Soakwells,
    • Connections,
    • Gables,
    • Eaves.
  • External Walls
    • Brickwork,
    • Render,
    • Cladding,
    • Lintels,
    • External windows and flyscreens,
    • External taps.
  • Outside areas.
    • External stairs,
    • External balconies,
    • External balustrades,
    • Garages,
    • Carports,
    • Patio,
    • Verandah,
    • Pergola,
    • Alfresco,
    • Pools,
    • Sheds,
    • Paving,
    • Driveway,
    • Crossover,
    • Verge,
    • Fences.
  • Underfloor Structure
  • Flooring
  • Roof space.
    • Internal roof cover,
    • Frame,
    • Insulation,
    • Sarking,
    • Party walls,
    • Venting to external
  •  Individual Room (Room by Room) Inspections.
    • Quality of finish,
    • Ceiling and cornice,
    • Walls and skirting,
    • Windows frames and hardware,
    • Doors and  hardware,
    • Finishes,
    • Cabinets,
    • Closets,
    • Electrical,
    • Tiling,
    • Water/drainage,
    • Exposed brick,
    • Render,
    • Plaster,
    • Paint,
    • Cladding,  
    • Floor cover
  • Open and shut all doors and windows
  • Open and shut all cabinet doors and drawers
  • Drainage to basins and basin overflows and WCs
  • Make sure HWS heats, run hot and cold water to all points, check water flow