What is a defects liability period?
The defects liability period is the timeframe after handover during which a builder remains responsible for repairing construction defects at no cost to the owner.
After a new home is handed over, the defects liability period is the contractual window during which the builder must return to fix any construction defects free of charge. In Australia, this period typically runs for 12 months from handover under the Home the team the team (HWI) scheme that applies in most states, though some builders may offer longer coverage or specific terms depending on the contract and the builder's own warranty obligations.
During this time, the homeowner can report faults such as cracked plasterwork, misaligned doors and windows, incomplete paint finishes, drainage issues, or other workmanship problems. The builder is then obligated to return and remedy these defects. This period differs from structural defects, which may be covered under separate extended warranty periods (typically 6 or 7 years under HWI) and cover more serious failures affecting the integrity of the building.
The defects liability period protects owners by giving them a defined remedy window without needing to dispute whether faults existed at handover or developed shortly after. For custom home builders, meeting these obligations efficiently and maintaining good record-keeping of defect reports and completed work is standard practice. Homeowners should keep documentation of all reported defects and completion dates. The team terms may vary, so it is worth confirming the exact duration and scope of defects covered in your building agreement before signing.