What Is a Defects Liability Period?
The defects liability period (DLP) is a defined window of time after practical completion during which the builder must return to fix any defects — that is, work that does not meet the contract specifications, relevant building codes, or a reasonable standard of workmanship. During this period, the homeowner can notify the builder of defects and the builder is obligated to rectify them at their own cost.
How It Works
The DLP typically runs from the date of practical completion and is specified in the building contract. Common timeframes are:
- 13 weeks (90 days) for most residential building contracts
- 6–12 months for larger or commercial projects
- Up to 6 years for structural defects under statutory warranties
During the DLP, the homeowner should conduct a thorough inspection and provide the builder with a written defects list. The builder then has a reasonable time to arrange rectification. If the builder fails to address the defects, the homeowner may be entitled to have the work completed by another licensed builder and recover costs through the relevant tribunal or court.
A retention amount (typically 2.5–5% of the contract price) is often held back from the final payment until the DLP expires and all defects have been addressed.
State Variations
| State/Territory | Typical DLP (Residential) | Structural Defect Warranty |
|---|---|---|
| QLD | As per contract | 6 years 6 months |
| NSW | As per contract | 6 years (structural), 2 years (non-structural) |
| VIC | As per contract | 6 years (structural), 2 years (non-structural) |
| WA | As per contract | 6 years |
| SA | As per contract | 5 years |
How It Relates to Licence Verification
A builder must hold a current licence to carry out rectification work during the DLP. If the builder’s licence is cancelled or suspended, they cannot legally return to fix defects, potentially leaving you to rely on home warranty insurance. Verifying your builder’s licence through TradieVerify at the start of a project — and monitoring it during the build — helps ensure they remain able to fulfil their defects obligations.