Implied warranties for building work

All residential building work is covered by the implied warranties set out in the Building Act 2004.

These are basic protections for consumers and apply to all contracts for residential building work, whether written or verbal.

What is the role of implied warranties?

The implied warranties prescribed in the Building Act 2004 ensure homeowners are protected in the event of building failure. They require all building work to be fit for purpose, meet the requirements of the Building Code, and be undertaken with reasonable care and skill.
People carrying out building work also have an obligation to ‘put things right’ for up to 10 years as long as there has not been misuse or negligent damage caused by the owner or occupier.

What other consumer guarantees are available?

Trade organisations, such as the Registered Master Builders Federation and Certified Builders, also offer guarantees of workmanship, but they are not compulsory. Make sure you read the fine print.

While consumers automatically receive protection when they purchase goods and services, these do not always apply to building work. The Consumer Guarantees Act does not apply to goods supplied for building work, the Fair Trading Act deals with misleading conduct only, and the Construction Contracts Act is about payment arrangements. 

For more information see Implied warranties in building contracts.