Builder Did Defective Work? How to Get It Fixed or Get Your Money Back

Cracked render, a leaking shower, a deck that moves when you walk on it. You paid good money, the builder has gone quiet, and you are stuck with the mess. Here is exactly what to do, in order, to get the work fixed or get your money back.

Step 1: Know what the law actually gives you

You have more leverage than you think. Every state gives homeowners statutory warranties that a builder cannot contract out of:

• New South Wales – Home Building Act 1989, section 18B. Work must be done with due care and skill, comply with the plans and the law, and be fit for purpose. Six years for major defects, two years for everything else.
• Victoria – Domestic Building Contracts Act 1995, section 8. Same warranties, and you generally have up to ten years to sue under the Building Act 1993.
• Queensland – Queensland Building and Construction Commission Act 1991, Schedule 1B, plus the Queensland Home Warranty Scheme (six years and six months for structural defects).
• Western Australia – Home Building Contracts Act 1991 and complaints to Building and Energy within six years of completion.

On top of that, the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010) applies to residential building work. Section 60 says services must be provided with due care and skill. Section 61 says they must be fit for purpose. If the failure is major, section 267 lets you cancel the contract and recover compensation instead of giving the builder another go.

Step 2: Document everything before you say a word

1. Photograph and video every defect with a date stamp. Get close-ups and wide shots showing location.
2. Pull together the contract, plans, specifications, invoices and every text message or email with the builder.
3. If the defect is structural or water-related, get an independent building inspector to write a short report. Budget $400 to $800. It pays for itself the moment the builder starts arguing.
4. Get one or two written quotes from another licensed builder to rectify the work. This is your damages figure.

Step 3: Give the builder one written chance to fix it

Tribunals expect you to have offered the builder a reasonable opportunity to rectify. Send a short email listing the defects, attaching photos, and asking for a written response within 7 days. Keep it factual. No name-calling. This email becomes Exhibit A later.

Step 4: Send a formal letter of demand

If the builder ignores you, stalls, or blames “settlement cracks”, the next move is a proper letter of demand. This is the step that actually gets results, because it tells the builder you know the law and you are ready to escalate. A strong letter:

• Lists each defect and the specific warranty it breaches (for example, section 18B(1)(a) of the Home Building Act).
• Demands rectification by a fixed date or payment of the quoted rectification cost.
• Sets a 14-day deadline.
• States that if the deadline passes you will lodge a complaint with the regulator (NSW Fair Trading, QBCC, the Building and Plumbing Commission in Victoria, Building and Energy in Western Australia) and file in the tribunal.

Builders with a licence to protect take these letters seriously. A regulator complaint can lead to a rectification order, and repeated orders put the licence at risk.

Step 5: Escalate if you have to

If 14 days pass with nothing, lodge the regulator complaint and file in NCAT, VCAT, QCAT or SAT. Filing fees are modest and you do not need a lawyer. Your evidence pack from Step 2 and your letter of demand from Step 4 do the heavy lifting.

Common mistakes that cost homeowners

• Paying the final invoice before defects are fixed. Once the money is gone, so is your leverage.
• Getting another builder to fix it first without notice. You may still recover the cost, but the builder will argue they were denied the chance to rectify.
• Waiting. The two-year window for non-major defects in New South Wales goes fast.

Get your letter of demand drafted today

Claim Done drafts your Letter of Demand for $49. Tell us about your photos, quotes and contract, answer a few questions, and you get a letter that cites the correct statutory warranties for your state, sets a hard deadline and spells out exactly what happens next. We email it to the builder for you so there is no “I never got it”.

Start my Letter of Demand now – $49