When your build is finished and you've moved in, you might assume your relationship with the builder is done. But if defects appear after handover, a defects liability period (DLP) gives you a formal window to have those faults remedied — usually at no extra cost to you. Understanding exactly what this covers, and what it doesn't, can save you a lot of stress and money down the track.
What Is a Defects Liability Period?
A defects liability period is a clause written into most construction contracts that requires the builder to return and fix defects that appear within a set timeframe after practical completion. It's essentially a contractual warranty on the workmanship and materials used in your build.
During this period, the builder remains responsible for repairing faults that stem from poor workmanship, defective materials, or work that doesn't comply with the agreed contract documents or the NZ Building Code. It is not a general maintenance period — normal wear and tear, or damage caused by you or a third party, is typically excluded.
How Long Does the Defects Liability Period Last?
The length varies depending on the contract used. Common timeframes in New Zealand are:
| Contract Type | Typical DLP Length |
|---|---|
| Residential (standard) | 3–12 months |
| NZS 3910 (commercial) | 12 months |
| NZS 3604 residential builds | Check your contract — NZS 3604 is a structural timber-framing standard, not a contract form; DLP length depends on the contract used |
| Custom/bespoke contracts | Negotiated — check your contract |
Always read your specific contract carefully. If you're using a standard form such as the New Zealand Certified Builders (NZCB) or Master Builders contract, the DLP terms will be spelled out clearly. If in doubt, ask your builder or a solicitor to explain the clause before you sign.
What Does the DLP Actually Cover?
Generally, a defects liability period covers:
- Workmanship defects — cracking plasterboard joins, poorly fitted joinery, uneven flooring, or leaking flashings that result from how the work was done
- Material failures — products that fail prematurely due to being faulty or incorrectly specified
- Non-compliant work — anything that doesn't meet the NZ Building Code or the agreed plans and specifications
- Incomplete items — minor outstanding work noted at practical completion that hasn't been finished
It does not typically cover:
- Normal settlement cracking in plaster or paint
- Damage caused by you, your tenants, or other tradespeople
- Routine maintenance (e.g., repainting, re-sealing decks)
- Defects you were aware of and accepted at handover without noting them
The 10-Year Implied Warranty Under the Building Act
Beyond the contractual DLP, New Zealand law provides additional protection. The Building Act 2004 implies certain warranties into residential building contracts, including that the work will be done properly and in accordance with the Building Code. These implied warranties provide additional rights beyond the contractual DLP — check with MBIE Building Performance or a solicitor for the current scope and timeframes that apply to your situation.
This means even after your DLP expires, you may still have legal recourse for significant defects — particularly those affecting weathertightness or structural integrity. MBIE Building Performance has useful guidance on these implied warranties and your rights as a homeowner.
Retention Money and the DLP
In commercial contracts, it's common for a percentage of the contract sum (often 5–10%) to be held back as retention money until the end of the DLP. This gives the client financial leverage to ensure defects are fixed. In residential contracts this is less common, but you can negotiate a retention clause — talk to your solicitor before signing.
How to Notify Your Builder of Defects
Always notify defects in writing — email is fine, but keep records. Be specific: describe the defect, where it is, and when you first noticed it. Give the builder a reasonable opportunity to inspect and remedy the issue. If they dispute the defect or refuse to act, you may need to:
- Seek an independent assessment from a licensed building practitioner
- Contact MBIE Building Performance for guidance on dispute resolution
- Consider mediation or the Disputes Tribunal for lower-value claims
- Seek legal advice for significant or complex disputes
BRANZ is also a valuable resource for independent technical information on building defects and standards.
Licensed Building Practitioners and Accountability
If your builder is a Licensed Building Practitioner (LBP), they are legally required to carry out or supervise restricted building work — and they can be held accountable through the LBP scheme. You can check a builder's licence status and make a complaint via Licensed Building Practitioners. This adds an extra layer of protection beyond the contractual DLP.
When to Call a Professional
If you notice defects after handover, don't attempt to fix them yourself before notifying your builder — doing so could void your DLP rights. For complex defects involving weathertightness, structural issues, or anything that may require a building consent to remedy, you should involve a qualified professional. A licensed building practitioner or registered architect can provide an independent assessment and help you document the defect properly.
You can find qualified, local builders and building inspectors on tradedirectory.co.nz to help you assess and manage defect claims.
Sources & Further Reading
- MBIE Building Performance — Building Act warranties and homeowner rights
- Licensed Building Practitioners — check a licence or make a complaint
- BRANZ — independent building research and technical guidance
- Standards NZ — NZS 3910 and other construction standards
- Consumer NZ — your rights in building contracts
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