NZ Building Answers

What are the implied warranties in the Building Act 2004?

Updated May 2026

Short answer

Section 362I of the Building Act 2004 implies into every residential building contract a set of statutory warranties — the work will be done with reasonable skill and care, in accordance with the plans and consent, with materials fit for purpose, in a way that meets the Building Code, within a reasonable time. These warranties exist whether or not the contract mentions them, and they can't be excluded by clever drafting.

Key facts

  • Found in section 362I of the Building Act 2004
  • Applies to all residential building contracts
  • Cannot be excluded by contract
  • Survives the 12-month notification window for remedies (s362Q)
  • 10-year long-stop applies (s393)

The implied warranties in plain English

Work done with reasonable care and skill. Work meets the Code. Work meets the plans and the consent. Materials fit for their purpose. Work finished in a reasonable time (or the contracted time if specified). The completed work is fit for habitation.

Most disputes about defects ultimately come back to one of these — usually 'reasonable skill and care' or 'meets the Code'.

How to claim under the warranties

Notify the builder in writing of the defect with photos. Give a reasonable time to remedy. If they don't, escalate to the Disputes Tribunal (under $60k), BDT adjudication (any size), or the courts.

The 10-year long-stop in section 393 means you can claim within 10 years of the act or omission that caused the breach — even if you discover it later. After 10 years the claim is barred (with the narrow 2-year contribution exception from the Supreme Court 2024 decision).

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Related questions

Sources: Building Act 2004 sections 362I, 362Q, 393. General information for NZ homeowners, not legal advice — building rules change and vary by council, so confirm critical details on the official source before acting. Last updated 2026-05.