You have found defects in your home. You have told your builder. They have either ignored you, made excuses, or attempted repairs that did not fix the problem. Now you are stuck with building faults that should never have been there in the first place, and a builder who will not take responsibility.

This is one of the most common and frustrating situations Australian homeowners face. The good news is that you have clear legal rights and several escalation pathways, particularly in New South Wales and Victoria where specific legislation protects residential building consumers.

This guide covers what to do, step by step, when your builder will not fix defects.

Step 1: Send a Formal Written Notice

Before you can escalate a building defect dispute, you need a documented record showing that you notified the builder and gave them a reasonable opportunity to fix the problem. This is not just good practice. Regulators and tribunals in both NSW and Victoria will expect to see that you followed this step.

What to Include in Your Notice

Your full name, the property address, and the date of the notice
A detailed list of every defect, including its location and a description of the problem
Photographs of each defect (attached or enclosed)
A reference to the building contract, the date of practical completion, and the applicable statutory warranty provisions
A clear statement that you are requesting rectification under the statutory warranty
A reasonable deadline for the builder to respond, typically 14 to 28 days
A statement that if the builder does not respond or rectify the defects within the stated timeframe, you intend to lodge a formal complaint and pursue the matter through the relevant tribunal

Send the notice by email with read receipt enabled and by registered post. Keep copies of everything.

Tip

Even if you have already raised the defects verbally or through informal messages, a formal written notice resets the clock and creates a clear paper trail. Tribunals take formal notices seriously because they demonstrate that the builder was given fair warning.

What Happens After You Send the Notice

There are three typical outcomes. The builder may respond and arrange to inspect and rectify the defects. The builder may respond and dispute the defects. Or the builder may not respond at all.

If the builder responds and arranges rectification, supervise the work carefully and document the results. If the repairs are inadequate, you will need to go through the process again. If the builder disputes the defects or fails to respond, proceed to the next step.

Step 2: Get an Independent Defect Investigation Report

If the builder is not cooperating, you need independent evidence to support your claim. A defect investigation report from a qualified building consultant documents each defect, analyses its cause, references the relevant provisions of the National Construction Code and Australian Standards, and estimates the cost of rectification.

This report serves multiple purposes:

It provides professional evidence that the defects exist and were caused by substandard construction
It quantifies the cost of repair, which helps you understand the financial impact and strengthens your negotiating position
It can be submitted as evidence in a complaint to a regulator or in a tribunal application
If the matter proceeds to a hearing, it forms the foundation for a formal expert witness report

Choose a building consultant who is independent of the builder and has experience with defect investigations. If there is any chance the matter will reach a tribunal, check that the consultant has experience providing expert evidence and is willing to attend a hearing if required.

Step 3: Lodge a Complaint with the Regulator

If the builder has not responded to your formal notice or has refused to carry out rectification, the next step is to lodge a complaint with the building regulator in your state.

NSW: NSW Fair Trading

In New South Wales, building complaints are handled by NSW Fair Trading under the Home Building Act 1989. You can lodge a complaint online, by phone, or by visiting a Fair Trading centre.

When you lodge a complaint, Fair Trading may:

Contact the builder and request that they respond to your complaint
Arrange a mediation or conciliation session between you and the builder
Issue a rectification order requiring the builder to fix the defects
Take disciplinary action against the builder's licence if the matter involves serious non-compliance

Fair Trading can be an effective first step, particularly for straightforward defect claims. However, their power to enforce rectification is limited. If the builder still refuses to act after Fair Trading's intervention, you may need to apply to the tribunal.

Victoria: Victorian Building Authority (VBA)

In Victoria, the Victorian Building Authority (VBA) handles building complaints under the Building Act 1993 and the Domestic Building Contracts Act 1995.

The VBA can:

Investigate the complaint and inspect the property
Issue building notices and building orders requiring the builder to rectify defective work
Take disciplinary action against the builder's registration
Refer the matter for dispute resolution through Domestic Building Dispute Resolution Victoria (DBDRV)

Important

In Victoria, before you can apply to VCAT for a domestic building dispute, you must first apply to DBDRV for dispute resolution. This is a mandatory step introduced by the Domestic Building Contracts Act 1995 (as amended). DBDRV offers assessment and conciliation services at no cost to the homeowner.

Step 4: Mediation

Mediation is a structured negotiation process where an independent mediator helps you and the builder reach an agreement. It is less formal and less expensive than a tribunal hearing, and many building disputes are resolved at this stage.

How Mediation Works

The mediator does not make a decision or issue orders. Their role is to facilitate a discussion, help both parties understand each other's position, and work towards a mutually acceptable outcome. If you reach an agreement, it is put in writing and signed by both parties. The agreement can then be enforceable.

Mediation in NSW

In NSW, Fair Trading offers a free mediation service for building disputes. You can also engage a private mediator if you prefer. Having your defect investigation report available during mediation strengthens your position because it provides independent evidence of the defects and their estimated repair cost.

Mediation in Victoria

In Victoria, DBDRV provides assessment and conciliation for domestic building disputes. This is a mandatory step before applying to VCAT. If DBDRV cannot resolve the dispute, they will issue a certificate that allows you to proceed to the tribunal.

Mediation only works if both parties are willing to negotiate in good faith. If the builder refuses to engage with the process or will not agree to a reasonable outcome, you will need to escalate to the tribunal.

Step 5: Apply to the Tribunal

If mediation and regulatory complaints have not resolved the dispute, the next step is to apply to the relevant tribunal for a formal hearing and binding orders.

NSW: NCAT (NSW Civil and Administrative Tribunal)

In NSW, building disputes are heard in the Consumer and Commercial Division of NCAT. You can apply to NCAT if your dispute involves residential building work and the builder has failed to rectify defects after being given a reasonable opportunity.

NCAT can:

Order the builder to carry out specific rectification work
Order the builder to pay compensation for the cost of having the defects fixed by another contractor
Order the builder to pay damages for consequential losses, such as temporary accommodation costs during repairs
Make findings on the quality of work and compliance with the Home Building Act 1989

NCAT application fees depend on the amount of your claim. For claims under $30,000, the process is relatively straightforward and designed to be accessible without a lawyer, though legal representation is allowed.

Victoria: VCAT (Victorian Civil and Administrative Tribunal)

In Victoria, domestic building disputes are heard by VCAT. As noted above, you must first go through DBDRV before applying to VCAT.

VCAT can:

Order the builder to rectify defects or pay the cost of rectification
Award compensation for losses caused by the defective work
Make orders regarding incomplete or abandoned building work
Determine whether work complies with the Domestic Building Contracts Act 1995 and the Building Act 1993

Tip

At both NCAT and VCAT, your defect investigation report is critical evidence. If the builder disputes the defects, the tribunal will rely heavily on independent professional evidence to make its decision. Without a report from a qualified building consultant, your claim is significantly weaker.

Understanding Warranty Periods

Every step in this process is governed by statutory warranty periods. If you miss the deadline, you may lose the right to pursue the builder entirely.

Warranty Type	NSW (Home Building Act 1989)	Victoria (Domestic Building Contracts Act 1995)
Minor defects (non-structural)	2 years from completion	2 years from completion (domestic building insurance)
Major defects (structural)	6 years from completion	10 years from completion
Starting point	Date of practical completion or occupation certificate	Date of practical completion or occupancy permit

Warranty periods run from practical completion, not from when you moved in or noticed the defect. If your home was completed two years ago but you only discovered the defect recently, you may still be within time for major defects but out of time for minor ones. Check your dates carefully and act promptly.

QWhat Counts as a Major Defect?

In NSW, a major defect is defined in the Home Building Act 1989 as a defect in a major element of a building that is attributable to defective design, defective or faulty workmanship, defective materials, or failure to comply with the structural performance requirements of the NCC. A major element includes the internal or external load-bearing parts of a building, fire safety systems, and waterproofing.

In Victoria, the Domestic Building Contracts Act 1995 covers structural defects for ten years. These include defects affecting the structural soundness of the building, waterproofing failures, and issues that make the building unfit for habitation.

Practical Steps to Protect Yourself

Regardless of which stage of the dispute you are at, these practical steps will help protect your position:

Document everything from the moment you first notice a problem, including photographs, written notes, and dates
Always communicate with the builder in writing and keep copies of all correspondence
Do not attempt permanent repairs before the builder has inspected the defects and you have independent documentation of the original condition
Obtain an independent defect investigation report as early as possible
Keep receipts for any temporary repairs you carry out to prevent further damage
Do not accept verbal promises from the builder without written confirmation of what will be done and by when
Be aware of your warranty period deadlines and act well before they expire
If the amount at stake is significant, consider getting legal advice from a solicitor who specialises in building disputes

What If the Builder Has Gone Out of Business?

If your builder has become insolvent, deregistered, or simply disappeared, you may still have options.

Home Warranty Insurance (NSW)

In NSW, builders carrying out residential work over $20,000 are required to hold home building compensation insurance (previously known as home warranty insurance). This insurance, managed by icare, covers homeowners if the builder dies, disappears, or becomes insolvent during the warranty period. The maximum cover is $340,000 per dwelling for loss arising from defective or incomplete work.

Domestic Building Insurance (Victoria)

In Victoria, builders must obtain domestic building insurance for contracts exceeding $16,000. This insurance provides similar protection when the builder cannot fulfil their obligations. The maximum cover amount and specific terms vary depending on the policy.