TIME LIMITATIONS 

FOR 

BUILDING DISPUTES

 

There are many time limitations period which apply in building and construction disputes, some of which are as follows:

 

A.                STATUTORY WARRANTIES

 

Implied statutory warranties for residential work which a builder gives are set out under Section 18B of the Home Building Act.  Examples include warranties such as (the following is not a complete list):

 

(a)               A warranty that the work will be performed in a proper and workmanlike manner and in accordance with the plans and specifications set out in the contract.

 

(b)               A warranty that all materials supplied by the holder of a contractors licence or person will be good and suitable for the purpose for which they are used and that, unless otherwise stated in the contract, those materials will be new.

 

Section 18E of the Home Building Act (the Act) provides that proceedings for breach of a statutory warranty must be commenced within seven (7) years after:

 

(a)               The completion of the work to which it relates; or

 

(b)               If the work is not completed:

(i)                  The date for completion of the work specified or determined in accordance with the contract, or

(ii)                If there is no such date, the date of the contract.

 

B.                 INSURANCE CLAIMS

 

1.                  Residential building work contracted to be done or if not contract commenced between 21 March 1990 and 30 April 1997:

 

To qualify for benefits under the scheme, beneficiaries must notify the Fair Trading Administration Corporation (FTAC) in writing within the following times:

 

(i)                 For incomplete residential building work – within 12 months from:

(a)                The contract date; or

(b)               The date provided in the contract for commencement of work; or

(c)                The date work ceased on the project, whichever is the latest.

 

(ii)                For loss relating to claims in:

(a)                Rectifying defects in insured building work or insured owner-builder work due to:

-                bad workmanship; or

-                faulty or unsuitable materials; or

-                failure to comply with plans and specifications; or

-                faulty design in come circumstances; or

-                failure to comply with legislation.

(b)               Repairing:

-                Damage caused to the dwelling due to a defect in the insured building work; or

-                Damage to the dwelling caused by a licence holder under the contract or its agents and/or employees incurred in rectifying major structural defects or in repairing to the dwelling that has occurred in consequence of major structural defects – within six months after the beneficiary first becomes aware of the defect but not later than seven years from:

(aa)       The commencement of insured building work provided it is not also insured owner builder work; or

(bb)      The date of issueof the owner/builder permit for insured owner/builder work.

 

(iii)              For loss relating to defects or damage in (ii) (a) & (b) but not relating, in general terms, to structural defects – within six months after the beneficiary first becomes aware of the defect but not later than three years from:

 

(a)                The commencement of the insured building work which is not also insured owner builder work; or

(b)               The date of issue of the owner/builder permit for the insured owner/builder work.

 

2.                  Insurance Contracts issued Between 1 May 1997 and 30 June 2002

 

Claims often are required to be made:

 

(a)               By a beneficiary to an insurer within seven (7) days after the completion date; and

 

(b)               Within six (6) months after the beneficiary first becomes aware or ought reasonably to be aware of the fact or circumstance under which the claim arises.

 

3.                  Insurance Contracts Issued from 1 July 2002

 

Section 103B of the Act provides among other things that a contract of home warranty insurance must provide cover for loss arising from, among other things, defects for a period of not less than:

 

(a)               in the case of a loss arising from a structural defect within the meaning of the regulations – six (6) years after the completion of the work or the supply of the kit home or the end of the contract relating to the work or supply whichever is the later; or

 

(b)               In the case of loss arising otherwise than from any such structural defect – two (2) years after the completion of the work or the supply of the kit home or the end of the contract relating to the work or supply, whichever is the later.

 

Regulation 57AC of the Home Building Regulation in general terms includes that a structural defect is any defect in a structural element of a building that is attributable to defective design, defective or faulty workmanship or defective materials (or any combination of these) and that:

 

(a)               Results in or is likely to result in:

 

(i)                  the building or any part of the building to be closed or prohibited from being used; or

(ii)                the destruction o the building or any part of the building; or

(iii)               physical damage to the building or any part of the building; or

(iv)              a threat of imminent collapse that may reasonably be considered to cause destruction of the building or physical damage to the building or any part of the building.

 

(b)               Prevents or is likely to prevent the continued practical use of the building or any part of the building.

 

Many other times also exist, such as time limits for lodging proceedings with the Court/CTTT and for lodging insurance appeals to the Court/CTTT.

 

Of course this information is in general terms.  If you require any legal advice you should contact your solicitor.