How long is a builder's warranty in Western Australia?

In Western Australia, a builder’s warranty protection lasts for six years from the date of practical completion for defective or incomplete residential building work, provided through home indemnity insurance under the Home Building Contracts Act 1991 (WA). That cover is “last resort,” meaning it responds when your builder has died, disappeared, or become insolvent — for everyday defect disputes with a builder who is still trading, your path is a complaint to Building and Energy, which can also act within six years of the work.

The six-year period explained

WA doesn’t use the same “structural versus non-structural” warranty split that some other states apply. Instead, the core consumer protection runs through home indemnity insurance (HII), and the key number to remember is six years from practical completion.

If residential building work is valued over $20,000, the Home Building Contracts Act 1991 requires the builder to take out home indemnity insurance in the owner’s name before accepting payment or starting work. That policy covers potential claims for defective or incomplete work — and loss of deposit — for six years from the date of practical completion of the building work.

There’s a longer period for owner-builders: cover generally runs for seven years from the date the building licence is issued.

What “last resort” actually means

This is the part homeowners most often misunderstand. Home indemnity insurance in WA is last-resort cover. It does not respond simply because your builder is being slow or difficult. It responds when the builder cannot put things right because they have:

• died,
• disappeared, or
• become insolvent.

So if your builder is still trading and just won’t fix a defect, you don’t claim on the insurance first — you pursue the builder directly and, if needed, through a complaint to Building and Energy. The insurance is the safety net for when the builder is no longer around to be held responsible.

What home indemnity insurance covers

When it does respond, HII covers the homeowner for:

• Loss of deposit if the builder fails to start the work
• Incomplete work if the builder can’t finish
• Defective work identified within the cover period

Because it’s taken out in the owner’s name, the cover follows the home — a later owner within the period can generally rely on it too. Keep the certificate of insurance with your build records.

If the builder is still trading — Building and Energy

For the far more common situation — a builder who’s still in business but won’t rectify defects — the regulator is Building and Energy (the Western Australian government agency responsible for building regulation).

You can lodge a building service complaint with Building and Energy about faulty or unsatisfactory residential building work. Importantly, this generally must be done within six years of the work being completed — the same six-year horizon as the insurance. Building and Energy can investigate and, where a complaint is made out, issue a building remedy order requiring the builder to fix the work.

If a matter can’t be resolved that way, disputes can proceed to the State Administrative Tribunal (SAT), which hears building-related cases in WA.

How to make the most of your warranty period

The six-year clock is generous, but it only helps if you can prove what was wrong and when. To protect your position:

• Do a thorough handover inspection and record every defect before you accept the keys, so problems are documented from day one.
• Report defects in writing to your builder, with dated photos, as soon as you find them. A verbal complaint leaves no trail.
• Keep your paperwork — the contract, the certificate of home indemnity insurance, the practical completion date, and all correspondence. The practical completion date is what starts the six-year period.
• Act well before the deadline. Don’t leave a claim or complaint to the last months of the sixth year; investigations and tribunal processes take time.

Why the practical completion date matters

Almost everything about the WA warranty period hangs on one date: practical completion. That’s the point at which the home is complete enough to be reasonably lived in, apart from minor finishing items — and it’s the date the six-year insurance period runs from. Get it recorded clearly. If there’s ever a dispute about whether a claim is in time, the practical completion date is the reference point, so make sure it’s documented in your handover paperwork and that you keep a copy.

What the warranty typically won’t cover

Home indemnity insurance is a safety net for serious failures, not a maintenance plan. It generally won’t help with:

• Normal wear and tear, or damage you or a later occupant caused
• Work you engaged a separate trade to do outside the builder’s contract
• Problems where the builder is still trading and able to fix the work — that’s a matter to pursue with the builder and, if needed, Building and Energy
• Claims made outside the cover period

Knowing the limits matters: many “warranty” disputes are really about a trading builder refusing to rectify, which is a complaint-and-tribunal path, not an insurance claim.

How WA compares

WA’s model — last-resort home indemnity insurance plus a regulator-led complaint path — is different in structure from states that spell out statutory warranties directly in legislation, but the practical horizon is similar: most states land around a six-year period for major or defective work. If you’re building or buying elsewhere, see our guides to builder’s warranty in Australia and NSW, or home warranty insurance across the states.

This article is general information, not legal advice. For your specific situation, check the current requirements with Building and Energy WA or seek independent advice.

Key Takeaways

• In WA, a builder’s warranty protection runs for six years from practical completion for defective or incomplete residential work, via home indemnity insurance under the Home Building Contracts Act 1991.
• Home indemnity insurance is required for residential work over $20,000, taken out in the owner’s name before work starts — and owner-builders are covered for seven years from the building licence issue date.
• The insurance is “last resort”: it responds when the builder has died, disappeared, or become insolvent — not simply because a trading builder is being difficult.
• If the builder is still trading, lodge a building service complaint with Building and Energy — generally within six years — and Building and Energy can issue a building remedy order; unresolved disputes go to the State Administrative Tribunal (SAT).
• The six-year clock starts at practical completion, so record every defect at handover, report issues in writing with dated photos, keep your insurance certificate, and act well before the deadline.