Read more about Faulty products
Activating the warranties
When the warranties are breached:
- most breaches can be resolved through the negotiation process set out in your contract
- if your contractor does not fix the breach within a reasonable timeframe, seek legal advice as you may be able to have another tradesperson repair the work and have the contractor pay the costs
- if the warranties are breached and the building will not be safe for occupants or lacks the expected quality set out in the contract, your contractor may have to pay you for the loss of value to your home. Or they might have to re-reimburse you for their faulty building work
- you may also have the option to cancel your contract, though you should seek legal advice
- you can take the tradesperson to the District Court or the High Court. To be successful in court, you will have to show you have suffered loss or damage as a result of the actions of the tradesperson. The court can award you compensation for the breach.
Implied warranties and defects(external link) — Building Performance
How to identify defects(external link) — Building Performance
Contracts and problems that may occur(external link) — Building Performance
Read about Dealing with disputes
Consumer Guarantees Act
The Consumer Guarantees Act applies to goods and services provided by the building industry but not to buildings or parts of buildings attached to land (e.g. apartments) for residential accommodation.
This means that when you hire a tradesperson, the Consumer Guarantees Act says that you can expect:
- the work is done with reasonable care and skill
- any materials used are of acceptable quality and fit for purpose
- the work is completed in a timely way.
- the tradesperson needs to fix work that isn’t competently and skilfully done, at no extra cost
- if they can’t or won’t fix the work, or it isn't fixed within a reasonable timeframe, you can get someone else to do the work and pass the cost on to the original tradesperson.
Fair Trading Act
The Fair Trading Act protects you from being misled about products or services. It prohibits false or misleading product advertising.
You can also get a refund and compensation under the Fair Trading Act if a tradesperson misleads you by claiming:
- work needs to be done when it is unnecessary
- they belong to a trade association or have some industry approval and this is untrue.
Read more about Poor quality or incomplete work.
Read more about Misleading prices or advertising.
Private building guarantees
Some building companies offer private building guarantees which you can choose to buy.
Always check a paid extra guarantee or warranty covers you for more than you're already covered for under the law.