Plumbing Defects and Statutory Warranty in NSW, VIC and QLD

What it is

Statutory warranties are the implied promises a builder gives to the owner under state residential building legislation. They cover defects in workmanship, materials and compliance with the National Construction Code. Plumbing defects are one of the most common claim categories. The classification of a plumbing defect as major or minor (sometimes called structural or non-structural) decides how long the owner has to bring a claim.

New South Wales

In NSW the statutory warranties sit in section 18B of the Home Building Act 1989. Section 18E sets the warranty periods. The current periods, set by the Home Building Amendment (Statutory Warranties) Act 2015, are six years for a major defect and two years for any other defect, both running from the completion of the work.

A major defect is defined in section 18E(4) as a defect in a major element of a building that causes (or is likely to cause) the inability to inhabit or use the building, destruction of the building or part of it, or threat of collapse. Major elements include fire safety systems and waterproofing.

For plumbing the typical breakdown is:

Major defect (6 years)

Failure of water supply or sewerage that makes the building uninhabitable. Internal leak that compromises waterproofing of a wet area. Failure of a fire-rated penetration where plumbing passes through a fire-rated wall.

Non-major (2 years)

A dripping tap. A noisy water hammer at a single fixture. A slow-draining floor waste that does not cause water damage.

Victoria

In Victoria the warranties sit in section 8 of the Domestic Building Contracts Act 1995. The periods sit in section 134 of the Building Act 1993, which sets a longstop of ten years from the issue of the occupancy permit (or the date of certificate of final inspection) for any building action.

Domestic Building Insurance (DBI) under the Victorian Managed Insurance Authority backs the warranty if the builder dies, disappears, becomes insolvent or has their registration cancelled. DBI covers structural defects for six years and non-structural defects for two years.

For plumbing in Victoria, defects in a major element follow the ten-year longstop with DBI providing the six-year non-completion backstop. Minor plumbing defects are two years. A separate registration scheme run by the Victorian Building Authority covers individual plumbers and issues Compliance Certificates for plumbing work.

Queensland

In Queensland Schedule 1B of the Queensland Building and Construction Commission Act 1991 sets seven implied warranties for residential construction work. The QBCC Home Warranty Scheme provides a 6 years and 6 months cover period for structural defects and a 6-month cover for non-structural defects, both measured from completion.

QBCC defines a structural defect as one that affects the structural performance, weatherproofing, safe operation, health or amenity of the home. A defect that becomes apparent in the last 6 months of the structural cover period gets an additional 6 months for the owner to act.

For plumbing in Queensland, a burst in-wall pipe that floods a slab and compromises a load-bearing element is structural and gets the 6 years and 6 months cover. A leaking tap is non-structural and gets 6 months.

Common plumbing defects

The defects that produce most claims:

Water hammer

A loud bang when a tap or solenoid valve closes. Usually fixed by adding water hammer arrestors at the fixture or correcting an incorrectly clipped pipe run. Generally minor.

Blocked drains

Root intrusion through a poorly sealed joint or a fall that is too shallow. If the blockage repeats within the warranty period and was caused by workmanship at install, it is a warranty claim.

Concealed leaks

The expensive one. A weep from a soldered copper joint or a mis-crimped PEX fitting inside a wall cavity. Usually only shows after the warranty period for non-major defects has run. This is why it gets argued as a major defect to access the longer period.

Hot water failure

A unit that fails within the manufacturer's warranty is a product issue. A unit installed without isolation valves, temperature-and-pressure relief drain or correct discharge piping is a workmanship issue and goes to the builder under the statutory warranty.

What builders should do

Document the plumber's licence number and the Compliance Certificate (or state equivalent) for every wet area. Photograph in-wall pipework before plasterboard, with a tape measure in shot for scale. Pressure-test the rough-in before lining. Keep the as-built diagram for the drainage layout. Those four steps together close off most defect arguments before they start.