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Time Limits for Building Defect Claims in Victoria

If you’ve discovered a building defect, strict deadlines apply under Victorian law. At Bastion Legal, we help homeowners, developers, and builders protect their rights and take action before it’s too late.

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Common Issues

Payment disputes, delays, variations, and defective work claims.

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Why It Matters

Disputes can disrupt projects, damage cash flow, and harm your reputation.

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Act Fast

Early legal advice strengthens your position and reduces costs.

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How We Help

Clear advice, practical strategies, and strong representation at VCAT and beyond.

Why time limits matter

Building defects can cause serious financial and safety issues, but your ability to make a claim depends on strict legal deadlines.

Under the Building Act 1993 (Vic), legal proceedings (called “building actions”) must begin within 10 years of:

  • the date an occupancy permit was issued, or

  • if no occupancy permit exists, the date of the certificate of final inspection.

This deadline applies regardless of when the defect is discovered. After 10 years, your right to take action is lost — even if the defect is serious or only recently appeared.

For cladding defects, there is an extended period of 15 years.

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The role of Domestic Building Insurance (DBI)

Domestic Building Insurance (DBI) can protect you if a builder dies, disappears, becomes insolvent, or fails to comply with tribunal or court orders. However, DBI coverage is time-limited.

If a defect arises after the DBI period has expired but within the 10-year timeframe under the Building Act, you may still be able to take legal action. The challenge is that the builder may no longer be insured, reducing the chance of recovering compensation — especially if the builder has ceased trading.

That’s why early legal advice is critical. Acting quickly helps preserve insurance rights, ensures compliance with statutory deadlines, and maximises your chances of a successful claim..

FAQ

  • Domestic building insurance (DBI) is designed to protect owners when a builder fails to complete or properly carry out residential building work. This insurance is mandatory in Victoria for most domestic building contracts valued at $16,000 or more. 

    The insurance commences on the earlier of: 

    • The date of the domestic building contract, or 

    • The date of the building permit. 

    The coverage ends: 

    • After two years from completion of the building work (or termination of the contract) for non-structural defects, and 

    • After six years from completion of the building work (or termination of the contract) for structural defects. 

    If you attempt to lodge a claim after these periods have expired, the insurer may deny coverage, even if the defect is legitimate. 

  • It’s the strict deadline under the Building Act 1993 (Vic) for bringing a building defect claim, starting from the occupancy permit or final inspection date

  • Yes. For cladding-related defects, you have up to 15 years.

  • You may still bring a claim, but recovery may be harder if the builder is uninsured or insolvent.

  • Yes, but only if it falls within the 10-year (or 15-year for cladding) period. The deadline applies regardless of when the defect is discovered.

  • The insurance policies generally define a structural defect as: 

    Any defect in a structural element of the building that is attributable to defective design, defective or faulty workmanship or defective materials (or a combination of these) and that: 

    (a) results in, or is likely to result in, the building or any part of the building being required by or under any law to be closed or prohibited from being used; 

    (b) prevents, or is likely to prevent, the continued practical use of the building or any part of the building; 

    (c) results in, or is likely to result in: 

        (i) the destruction of the building or any part of the building; or 

        (ii) physical damage to the building or any part of the building; or 

    (d) results in, or is likely to result in, a threat of imminent collapse that may reasonably be considered to cause destruction of the building or physical damage to the building or any part of the building. 

    The insurance policies generally define a structural element as: 

    In relation to the building means: 

    (a) Any internal or external load-bearing component of the building that is essential to the stability of the building or any part of it, including (but not limited to) foundations, floors, walls, roofs, columns and beams; or 

    (b) Any component (including weatherproofing) that forms part of the external walls or roof of the building. 

  • A defect in the building other than a structural defect. 

  • At Bastion Legal, we assist clients in: 

    • Determining whether their claim is still within time 

    • Preparing and lodging insurance claims 

    • Advising on legal rights after the expiry of insurance 

    • Initiating court or tribunal proceedings before limitation periods expire 

    • Engaging experts to assess structural or non-structural defects 

    We take a proactive approach to ensure your rights are preserved and your case is properly prepared. 

How we can help…

At Bastion Legal, we help homeowners, builders, and construction professionals navigate complex defect claims and insurance rules. Our services include:

  • Assessing whether your claim is still within time

  • Pursuing domestic building insurance claims

  • Investigating defects with expert evidence

  • Preparing proceedings in VCAT or court

  • Protecting your position when builders are uninsured or unresponsive

Whether you’ve just discovered a defect or need clarity on expired insurance rights, we provide practical, strategic advice to help you understand your options and take the right steps forward.


“Bastion Legal provided an excellent service and achieved a great outcome for our case…”

Dean was a pleasure to work with, he showed empathy, kindness and courtesy throughout. From the moment I engaged Dean, he managed the case with great professionalism and took away all the stress that I had been experiencing with a previous lawyer.

I am truly grateful that I found Bastion Legal and would recommend them to anyone in need of an exceptional lawyer and firm.

- Deb

Contact us

If you believe your property has structural or non-structural defects, or you are unsure whether your claim is still within the allowed time, contact Bastion Legal today. 

Let our experienced team protect your rights and guide you toward a resolution before your time limits expire.   

* Reforms under the Building Legislation Amendment (Buyer Protections) Bill 2025 are not yet in effect; the information above reflects the current law.