Disputes & Warranty

If you have a dispute with a builder, you can contact Building Advice and Conciliation Victoria. BACV was set up to help homeowners and builders work together to resolve building disputes. If you have a query about defective work or can't resolve a dispute with a builder, call BACV on 1300 557 559.

Builders Warranty Insurance is compulsory insurance that protects you against financial loss from defective and incomplete building work for seven years.

Here's an example. You discover cracks due to faulty workmanship two years after your new house has been built. But your builder is no longer in business and cannot fix the work. In that unfortunate situation, you can claim on your builder's warranty insurance and recover the cost of the repairs.

When you sign a contract for building work over $12,000, your builder must take out warranty insurance in your name and provide you with a copy of the insurance certificate and the policy document. If you do not receive these documents after signing the contract, make sure your builder has taken out the insurance.

Without warranty insurance for a job, a builder cannot legally take on the work. Be wary of any builder who wants you to get an owner-builder licence. The builder may have been refused warranty insurance, which could indicate previous quality or financial problems.

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