The 12-month defect period under s362Q

Section 362Q of the Building Act sets up a 12-month window after completion where, if a client notifies you of a defect, the onus sits with you as the builder to prove the work isn’t defective. It matters because for that first year the burden of proof runs against you — so knowing exactly what’s covered, and what isn’t, keeps you out of arguments you don’t need to have.

How the 12-month rule works

The rule splits the period after completion into two stages, and the difference between them is who has to prove the work was or wasn’t defective.

• 0–12 months from completion: you must remedy defects when notified, and the onus is on you as the builder to prove the work is not defective.
• 12 months to 10 years: the implied warranties and remedies still apply, but the onus shifts to the client to prove the work is defective.

Once you’re notified of a defect, you’re entitled to a “reasonable amount of time” to fix it (s362M).

When it applies

The rule started on 1 January 2015. It does not apply to contracts signed before that date.

What’s not covered (s362Q exclusions)

The 12-month rule doesn’t make you liable for everything. The following are excluded under s362Q:

• Damage outside human control — natural disaster, earthquake, fire.
• Damage caused by the occupant or owner, or by someone they engaged.
• Damage from a failure to maintain (s362S — the maintenance disclosure obligation).
• Damage from delayed repairs after a defect became apparent.
• Aesthetic preferences above industry norms, unless specified in the contract.
• Reasonable wear and tear.
• Critical lighting imperfections — sunlight at an angle of 15° or less (see the Tolerance Guide).
• Imperfections caused by occupant misuse, such as poor ventilation or water damage.