Builder Refusing to Fix Building Defects? Your Rights and Next Steps in Victoria
Introduction
There are few moments in a building project more frustrating than discovering that the work you paid for is not right, and then finding that the builder will not return to fix it. Cracked render, water ingress, doors that will not close, a roof that leaks at the first heavy rain: the defects vary, yet the experience of a builder refusing to fix building defects is remarkably consistent. Calls go unanswered, promises drift, and responsibility is quietly shifted onto subcontractors, the weather or the owner.
For homeowners, property investors, developers and business owners alike, the instinct is often to wait, or to pay someone else and move on. Both can prove costly. Victorian law gives building owners substantial rights, and those rights were strengthened considerably in 2025 and 2026. In this article, I explain what the law requires of your builder, the time limits that apply, the steps to take when a builder will not rectify defective work, and how Whelan Lawyers helps owners turn a stalled complaint into a resolved outcome.
Why a Builder Refusing to Fix Building Defects Matters More Than It First Appears
A defect left unaddressed rarely stays still. Water finds its way into framing, minor cracking becomes a structural concern, and non-compliant work can affect insurance, resale value and, for commercial owners, the ability to lease or occupy a premises. Every month of delay also erodes the evidence and runs down the clock on your legal rights.
The regulatory landscape has also shifted. On 1 July 2025, the Building and Plumbing Commission (BPC) commenced as Victoria's consolidated building regulator, bringing together the former Victorian Building Authority, Domestic Building Dispute Resolution Victoria and the domestic building insurance function previously held by the VMIA. From 1 July 2026, reforms introduced by the Building Legislation Amendment (Buyer Protections) Act 2025 (Vic) gave the BPC significant new powers to compel builders to return and rectify their work. Owners who understand these tools negotiate from a far stronger position than those who simply keep asking.
Is your builder refusing to fix defects? An early, clear-eyed review of your contract, your evidence and your time limits often changes the conversation entirely. Speak with our construction law team about the most effective path forward.
Key Legal Points to Understand
Your builder's warranties are implied by law
Under section 8 of the Domestic Building Contracts Act 1995 (Vic), every domestic building contract carries statutory warranties requiring work to be carried out in a proper and workmanlike manner, in accordance with the plans and specifications, using suitable materials and in compliance with applicable laws, including the Building Act 1993 (Vic) and its regulations.
These warranties apply by law regardless of whether they are expressly included in the contract. Sections 10 and 132 of the Domestic Building Contracts Act 1995 (Vic) restrict attempts to exclude or limit statutory protections, subject to the qualifications contained in the legislation. Under section 9, the warranties also run with the building, allowing subsequent owners to enforce them against the original builder.
Further reforms to Victoria's domestic building contract requirements are scheduled to commence on 31 March 2027. The date a contract was entered into may therefore affect which contractual requirements apply, although existing statutory warranties remain enforceable under the applicable legislation.
Time limits run whether or not you act
Section 134 of the Building Act 1993 (Vic) sets a ten-year longstop for building actions, running from the date of the occupancy permit or, where none was issued, the certificate of final inspection. Shorter limitation periods may apply depending on how a claim is framed, and insurance cover carries its own, considerably shorter windows. Waiting on a builder's vague assurances is one of the most common ways owners lose valuable rights.
Domestic and commercial work follow different paths
Commercial construction disputes are primarily determined by the relevant contractual obligations, together with applicable building legislation and other statutory rights. Depending on the dispute, resolution may involve contractual dispute resolution procedures, adjudication, arbitration or court proceedings.
Stronger enforcement tools since 1 July 2026
The BPC can issue rectification orders requiring responsible parties, including builders, subcontractors and certain developers, to rectify defective, incomplete or non-compliant building work. These powers generally apply for up to ten years after the relevant completion event, although VCAT may extend that period in appropriate circumstances. The powers can also extend to building work completed before the reforms commenced. Where a responsible party fails to comply, the BPC may arrange rectification and recover the costs in accordance with the legislation. Non-compliance may also result in disciplinary action.
For eligible domestic building contracts signed on or after 1 July 2026, Victoria's first resort Home Warranty Scheme provides protection for defective, incomplete or non-compliant work where the builder is unable or unwilling to remedy the problem. The scheme generally applies to eligible projects exceeding $20,000 on buildings of up to three storeys, with assistance capped at $400,000 per home. Eligibility, exclusions and applicable time limits must be assessed for each claim.
What to Do When Your Builder Is Refusing to Fix Building Defects
A methodical approach protects both your position and your evidence. The sequence below reflects what tends to work most reliably in practice.
Document everything first
Take dated photographs and video, keep a written chronology, and gather the contract, plans, variations, permits, invoices and every piece of correspondence. Where defects are significant, an independent building inspection report provides objective evidence that a builder cannot easily dismiss.
Put the builder on formal written notice
A formal letter identifying each defect, referring to the builder's obligations and setting a reasonable deadline for rectification moves the matter from informal complaint to documented demand. Offer reasonable access to inspect and rectify, since an owner who refuses access may later find that refusal counted against them. Consumer Affairs Victoria recommends this written step before escalating.
Resist the urge to repair before the evidence is secured
Engaging another trade to fix the problem may feel productive, but premature repairs can destroy evidence and complicate a later claim for the cost of rectification. Urgent make-safe work is different, and should be photographed and recorded carefully.
Use the BPC dispute resolution process
For domestic building disputes, the BPC offers free dispute resolution, can assess defects, and may issue binding dispute resolution orders. If the matter does not resolve, a certificate of conciliation is generally required before an owner can commence proceedings in the Victorian Civil and Administrative Tribunal (VCAT). A Home Warranty claim may also be available alongside the dispute.
Escalate to VCAT or the courts where necessary
VCAT can order a builder to rectify defective work within a set period or award damages covering the cost of having the work completed by others. Commercial disputes follow the contract's dispute resolution clause and, if unresolved, proceed through the courts.
Common Mistakes That Weaken an Owner's Position
The most damaging errors are usually made early. Owners withhold payments without a contractual basis and inadvertently place themselves in breach. They accept verbal promises that the builder will return after the next job, overlook notice requirements in the contract, or allow insurance windows to close.
Others escalate emotionally rather than strategically, issuing threats that harden positions without advancing the claim. If you are unsure whether your contract allows you to withhold payment, terminate or bring in another builder, seek advice before you act rather than after.
How Whelan Lawyers Can Help
Our construction law practice acts for building owners, developers and businesses who need defective work resolved efficiently and on commercial terms. We review your contract and evidence, confirm which warranties, insurance and time limits apply, and prepare formal correspondence that makes clear to the builder that the matter is being managed with rigour.
Where negotiation does not succeed, our construction dispute lawyers guide clients through BPC dispute resolution, Home Warranty claims and, where necessary, proceedings in VCAT or the courts. Our guide to water ingress issues in buildings explores one of the most common defect categories in more detail.
If your builder is refusing to fix building defects, contact our team for a confidential discussion about the most effective way forward.
Frequently Asked Questions
Can I make my builder come back and fix defects in Victoria?
In most cases, yes. Domestic builders are bound by statutory warranties under section 8 of the Domestic Building Contracts Act 1995 (Vic), and since 1 July 2026 the Building and Plumbing Commission can issue rectification orders requiring builders to fix defective work up to ten years after the occupancy permit. VCAT can also order rectification or award damages.
How long do I have to make a claim for building defects?
Section 134 of the Building Act 1993 (Vic) generally imposes a ten-year limitation period for building actions, calculated from the date of the occupancy permit or, where none was issued, the certificate of final inspection. Exceptions may apply, including certain cladding-related claims and circumstances where a court grants an extension. Other limitation periods may apply depending on the nature of the claim. Under Victoria's new Home Warranty Scheme, eligible major defects are generally covered for six years and other eligible defects for two years.
Do I have to go through the BPC before going to VCAT?
For most domestic building disputes, yes. Owners generally must first attempt resolution through the Building and Plumbing Commission's free dispute resolution service and obtain a certificate of conciliation before applying to VCAT. Commercial building disputes are not subject to this requirement.
Can I withhold payment if my builder will not fix defects?
Whether you can withhold payment depends on your building contract, the stage of construction and the circumstances of the defects. Withholding a payment that is properly due may place you in breach of contract, but a builder may not be entitled to payment where contractual completion requirements have not been satisfied. Obtain legal advice before withholding a progress or final payment.
Disclaimer: This article provides general information only and is not legal advice. The law is complex and varies based on individual circumstances. You should seek specific legal advice about your particular situation before making any decisions about legal matters.
Krishita Ramjeet
Krishita Ramjeet is a Melbourne construction lawyer with over a decade of legal experience, including roles at Master Builders Victoria, Major Road Projects Victoria and Lloyd Group. She advises builders, developers and construction professionals on contracts, building disputes and commercial risk.
