Handing over a brand-new home is not the end of your builder’s obligations. In Victoria, a mix of statutory warranties, contract defect periods and mandatory insurance keeps working in your favour long after the keys change hands. Here is how it all fits together for anyone building a new home in Dromana or elsewhere on the Mornington Peninsula.
Statutory warranties: the protection you cannot sign away
Every domestic building contract in Victoria carries a set of implied warranties under the Domestic Building Contracts Act 1995. These apply automatically, whether or not they appear in your contract, and a builder cannot contract out of them.
In broad terms, your builder warrants that the work will be carried out in a proper and workmanlike manner, that materials will be good and suitable, that the home complies with the law (including the National Construction Code), and that it will be reasonably fit to live in. These warranties sit behind every stage of the build, from the slab to the final coat of paint.
- Work performed with reasonable care and skill.
- Materials that are new (unless stated otherwise) and fit for purpose.
- Compliance with all relevant laws and standards.
- A finished home suitable for occupation.
How long do the warranties last?
Victoria uses a two-tier limitation period for building actions. For defects that are considered structural, you generally have up to ten years from the date the occupancy permit or certificate of final inspection was issued to bring a claim. Structural issues affect the load-bearing integrity of the home, such as footings, framing or the roof structure.
Non-structural defects carry a shorter window, commonly around two years. These are the finish and function items: cabinetry that will not close, tiling lippage, paint blemishes, gaps in cornices, or a door that binds. The exact classification of a defect can be nuanced, so keep records and raise concerns early rather than waiting.
The contract defect liability period explained
Separate from the statutory warranties, most building contracts include a defect liability period. This is a defined window after practical completion, frequently three to six months depending on your contract, during which you list minor defects and the builder returns to rectify them at no cost.
Think of it as a structured settling-in phase. New homes move a little as timber, plaster and masonry adjust to the local climate, and Dromana’s coastal conditions, salt-laden air and swings between hot summers and damp winters can bring small issues to the surface. A hairline crack in cornice or a sticking window is usually normal and easily fixed within this period.
Practically, you should keep a running list from the day you move in. A reputable builder will explain the reporting process at handover, and a clear building process makes it obvious who to contact and how quickly a maintenance visit will be scheduled.
Domestic Building Insurance (DBI)
For most residential building work in Victoria valued above the statutory threshold, your builder must take out Domestic Building Insurance before accepting a deposit or starting work. This cover, sometimes called builders warranty insurance, protects you if the builder dies, disappears, becomes insolvent or has their registration cancelled and cannot honour the warranties.
DBI is a last-resort cover, meaning you claim on it when the builder genuinely cannot rectify the work themselves. It typically responds for six years for structural defects and two years for non-structural defects from the date of the certificate of final inspection or occupancy permit. Always keep your certificate of insurance with your other build documents.
Why a registered builder matters
Statutory warranties and DBI only carry real weight when your builder is a registered building practitioner with the Victorian Building Authority (VBA). Registration signals that the practitioner meets Victoria’s competency and insurance requirements, and it gives you access to formal dispute pathways if something goes wrong.
As a Dromana-based builder, DARC Building Group works within these VBA obligations, and choosing a genuinely local team means faster call-backs when a maintenance item does crop up. You can review the scope of what a builder covers on their services page before you sign anything.
What is a defect, and what is normal?
Not every mark or movement is a defect the builder must fix. The Guide to Standards and Tolerances published for Victorian building work sets out what is acceptable and what is not, covering everything from surface finishes to floor level variation.
Commonly covered
- Water leaks, plumbing faults and failed waterproofing.
- Cracking beyond accepted tolerances.
- Doors, windows or drawers that do not operate correctly.
- Incomplete or incorrect work against the plans and specifications.
Usually your responsibility
- General wear and tear over time.
- Damage caused by the owner or a third party.
- Minor shrinkage cracks within accepted limits.
- Ongoing maintenance such as regrouting seals or clearing gutters.
How to protect yourself
The best warranty outcome starts before construction. Read your contract’s defect and maintenance clauses closely, confirm the DBI certificate is issued, and attend a proper pre-handover inspection so any items are logged from day one. Photograph anything you are unsure about and put every request in writing.
If a dispute cannot be resolved directly, Domestic Building Dispute Resolution Victoria (DBDRV) offers a free conciliation service, and unresolved matters can proceed to VCAT. Most issues, however, never reach that stage when you build with a transparent, communicative team.
If you are planning a new home in Dromana and want clear answers about warranties, defect periods and what happens after handover, get in touch for a straightforward chat about your project.
Frequently Asked Questions
How long is the warranty on a new home in Victoria?
Victoria applies a two-tier limitation period for building claims. You generally have up to ten years from the occupancy permit or certificate of final inspection for structural defects, and a shorter window of around two years for non-structural defects. These statutory warranties apply automatically and cannot be signed away by your builder.
What is the difference between a defect liability period and a warranty?
The defect liability period is a specific clause in your building contract, often three to six months after practical completion, when the builder returns to fix minor defects you have listed. Statutory warranties are separate legal protections under the Domestic Building Contracts Act that last for years afterwards. You can rely on the warranties even once the contract defect period has closed.
Do I need Domestic Building Insurance in Dromana?
For most domestic building work in Victoria above the statutory threshold, your builder must take out Domestic Building Insurance before starting, and this applies in Dromana and across the Mornington Peninsula. It protects you if the builder dies, disappears or becomes insolvent and cannot honour the warranties. Keep your certificate of insurance with your other build documents.
What should I do if my builder will not fix a defect?
First raise the issue in writing with photos and reference the relevant contract clause and the Guide to Standards and Tolerances. If it is not resolved, Domestic Building Dispute Resolution Victoria (DBDRV) offers a free conciliation service, and unresolved matters can be escalated to VCAT. Domestic Building Insurance may respond as a last resort if the builder is unable to rectify the work.