Using QBCC Warranties to Enforce High-End Quality Standards in QLD
- John Merlo
- 5 minutes ago
- 13 min read
For Queensland property developers, the moment of practical completion should be one of satisfaction. Yet, too often, it's a source of profound frustration. The project is finished, it technically complies with the National Construction Code (NCC), and the certifier has signed off on the plans. But the reality on the ground—the misaligned tiles, the imperfect paint finish, the sloppy joinery—falls far short of the high-quality standard promised to end-buyers and essential for the project's brand.
This is the frustrating gap between a project being merely "compliant" and being truly "quality." This gap can expose developers to significant financial and reputational risk, impacting developer liability and the success of future high-end construction projects.
Many developers believe that if a build meets the code, their legal avenues for demanding a better finish are limited. However, this overlooks a powerful, often underutilised, legal tool embedded within Queensland’s building legislation. The statutory warranties implied into all domestic building contracts under the Queensland Building and Construction Commission Act 1991 provide a robust framework for enforcing subjective quality standards that go far beyond simple code compliance.
Understanding how to leverage these warranties, particularly the statutory duty to perform work "in an appropriate and skilful way" and "with reasonable care and skill," is the key to transforming your contractual expectations into an enforceable legal reality.
Key Takeaways
The implied warranty under Schedule 1B, Section 22 of the QBCC Act—requiring work to be performed "in an appropriate and skilful way" and "with reasonable care and skill"—is your legal basis for demanding a higher quality of finish than simple code compliance.
This subjective standard is most powerful when supported by clear, pre-contractual documentation that defines your specific quality expectations and finish standards.
Recent legislative changes, including the BIFOLA Act 2024, increase regulatory scrutiny, making proactive quality management and dispute readiness more critical than ever.
A QBCC decision on defective work is not the final word; developers have clear pathways to appeal and challenge findings through QCAT with expert legal guidance.
The Developer's Dilemma: When "To Code" Isn't Good Enough
Start by directly addressing the target audience: Queensland property developers. Acknowledge the common frustration of a builder completing a project that technically complies with the National Construction Code (NCC) and approved plans, but lacks the high-quality finish expected by the developer and their end-buyers.
Frame this as the gap between "compliant" and "quality." Introduce the central thesis: that statutory warranties under the Queensland Building and Construction Commission Act 1991 provide a powerful, often underutilised, legal tool to enforce this higher, more subjective standard of quality.
Understanding Your Arsenal: The QBCC's Implied Statutory Warranties
For developers navigating the complexities of building contracts and potential defective work claims, the statutory warranties provided by the QBCC Act are your primary line of defence and enforcement. These warranties are not optional extras; they are automatically included by law into every regulated domestic building contract in Queensland, creating a baseline of consumer protection that cannot be signed away.
What Are Implied Warranties?
In Queensland, the law automatically includes certain non-excludable warranties into every builders contract. These legal guarantees exist to protect the homeowner—and by extension, the developer acting as the principal—and they apply with full force regardless of what the written contract states or omits.
These powerful provisions, which apply to work from the point of practical completion, were previously found in the formerly the Domestic Building Contracts Act 2000 but are now consolidated for clarity and force within Schedule 1B of the QBCC Act. This consolidation underscores their importance within Queensland’s building and construction law framework.
The Key Warranties Developers Must Know
While several warranties exist, a few are particularly crucial for developers focused on quality control. The first is the warranty that all materials supplied will be good and suitable for the purpose for which they are used. The second is the warranty that the work will be carried out in accordance with all relevant laws and legal requirements, such as the Building Act 1975.
However, the two most critical warranties for enforcing a premium finish are:
The warranty to carry out the work in accordance with the plans and specifications set out in the contract.
The warranty to carry out the work "in an appropriate and skilful way" and "with reasonable care and skill" (often referred to in practice as the "workmanlike manner" standard).
This raises a critical question for developers: what happens when the work complies with the plans, but the execution is poor? This is where the subjective power of this quality standard becomes your most important legal instrument.
"Appropriate and Skilful" Standard: Your Most Powerful, Subjective Quality Warranty
The statutory requirement that work be carried out "in an appropriate and skilful way" and "with reasonable care and skill" (Schedule 1B, Section 22 of the QBCC Act) is the cornerstone of a developer's argument for a higher quality finish. This standard—commonly referred to in industry practice as the "workmanlike manner" requirement—addresses the craftsmanship of the work, not just its location or material type.
When a builder dismisses your concerns by stating the work is "as per the drawings," this warranty is your legal basis for a QBCC complaint and subsequent building dispute.
Defining a Vague but Powerful Legal Term
Unlike the prescriptive requirements of the National Construction Code, this quality standard is not defined by rigid rules. Instead, it is a legal standard assessed by what a competent and experienced builder, exercising reasonable skill and care, would consider an acceptable level of workmanship for a project of that type and price point.
This is inherently subjective and contextual. It empowers a developer to argue that even if a tile is laid in the correct location specified on the plan, if it is crooked, poorly grouted, chipped, or misaligned with adjacent tiles, it unequivocally fails the statutory standard of being carried out "in an appropriate and skilful way." This is the core legal angle that allows you to enforce subjective quality.
When the Quality Standard Trumps "Compliance with Plans"
Imagine a developer constructing a luxury apartment block in Brisbane. The architectural plans specify a particular type of minimalist, shadow-line skirting for a clean, high-end aesthetic. The builder installs the skirting, and it complies with the plan's location and material specification. However, the plaster finish above the skirting is rough, the joins between lengths are visible and poorly filled, and the paint lines are messy and bleed onto the floor. The builder argues it is "to plan" and refuses to rectify.
In this scenario, the developer can successfully argue to the Queensland Building and Construction Commission (QBCC) that the work, while technically compliant with the drawing's dimensions, fails the statutory warranty to carry out work "in an appropriate and skilful way" and "with reasonable care and skill." The standard of finish is not what a reasonable person would expect for a luxury product, giving the QBCC grounds to issue a Direction to Rectify.
The Role of Your Building Contract in Setting the Standard
this quality standard is significantly strengthened or weakened by the quality of the building contract itself. A generic, off-the-shelf contract leaves the definition of "workmanlike" open to broad interpretation.
However, a contract that includes specific clauses on quality standards, references to Australian Standards for finishes, benchmark examples in photographs, or defined hold points for finish approval provides crucial, objective evidence of the agreed-upon standard.
Without this contractual reinforcement, both parties are left arguing over a vague industry norm, which is a far riskier and more ambiguous position for a developer demanding a premium finish.
How to Proactively Define and Enforce Your Quality Standard
Effective risk management in high-end construction means not waiting for a dispute to arise. The best way to leverage this statutory quality warranty is to build an evidentiary framework that defines your quality standard long before the first sod is turned. This involves meticulous pre-contractual preparation and diligent management during the build.
Building Your Evidentiary Armoury Before Day One
Before signing any contract, a developer must go beyond providing simple plans. Start with an exhaustively detailed scope of works. This document should then be supported by incorporating photographic examples of required finishes—for joinery, tiling layouts, paintwork edges, and plaster setting—directly into the contract as appendices.
These images become part of the contractual agreement, removing ambiguity. Furthermore, the contract should specify critical hold points where a developer's representative must inspect and approve key finishes (e.g., the quality of the plaster set before painting commences) before the builder can proceed and claim payment for that stage.
Contract Clauses That Give the Standard Teeth
Specific contract clauses are essential to give your quality standards legal force. Your contract should explicitly reference any relevant Australian Standards for finishes, such as AS/NZS 2311 for the Guide to the Painting of Buildings.
It is also critical to have well-defined clauses for progress claims that tie payment not just to the physical completion of a stage, but to the developer's express satisfaction with the quality of that completed stage.
Given the complexity and importance of these terms, which can also impact prime cost items and contract variations, engaging a specialist construction lawyer to draft bespoke clauses tailored to your project's quality expectations is a crucial upfront investment.
Managing Quality During Construction
A critical error developers make is failing to document quality issues as they arise. Waiting until the defects liability period to raise a list of "workmanship" issues significantly weakens your position. The builder can argue that by making progress payments without objection, you implicitly accepted the standard of work at each stage. To counter this, developers must conduct regular, documented site inspections. When a quality issue is identified, immediately issue a formal non-conformance notice or a detailed email with photographs to the builder. This creates a contemporaneous record of the issue being raised and disputed, which is invaluable evidence in any future construction dispute.
Navigating the QBCC Dispute Process When Quality Falls Short
Even with the best contracts and proactive management, disputes over quality can still occur. When a builder refuses to rectify work that fails to meet the statutory quality standard (work carried out in an appropriate and skilful way with reasonable care and skill), the formal QBCC dispute process is the developer's next logical step. Understanding how to navigate this process effectively is key to achieving a favourable outcome.
Lodging an Effective Complaint with the QBCC
The first step is to lodge a formal complaint for defective work with the QBCC. This is more than just filling out a form; it's about presenting a compelling, evidence-based case. Your submission must include clear, high-resolution photographic evidence of each defect, cross-referenced against the relevant plans and contractual clauses.
Crucially, you must articulate the complaint not merely as "non-compliant with plans," but specifically as a failure to meet the implied statutory warranty under Schedule 1B, Section 22 of the QBCC Act—to carry out work "in an appropriate and skilful way" and "with reasonable care and skill."
By referencing the pre-agreed standards, photographic examples from your contract, and the contemporaneous records of your non-conformance notices, you build a powerful narrative for the QBCC assessor to follow.
The QBCC Inspection and Direction to Rectify
Following your complaint, the QBCC will typically assign a Building Inspector to assess the alleged defects, which often involves a site inspection with both the developer and the builder present. The inspector's role is to assess the work against the statutory warranties, including the subjective quality standard requiring work to be carried out in an appropriate and skilful way. If the inspector agrees that the work is defective, the most common outcome is the issuance of a Direction to Rectify to the builder.
This is a formal, legally binding order to fix the specified defects within a set timeframe. This is a common and powerful regulatory tool; in 2023-2024, the QBCC issued 1,301 Directions to Rectify to contractors for defective building work, as part of managing 899 formal disputes lodged in the same period. Failure by the builder to comply can lead to fines, licence suspension, and a claim on their QBCC insurance.
Why a QBCC Decision Is Not the Final Word
It is a common misconception among developers that a decision made by a QBCC inspector is the final, binding word on a matter. If the QBCC assesses the work and decides it is not defective, or if a builder disputes a Direction to Rectify, the matter is far from over. Queensland's legal framework provides clear pathways for review and appeal.
Understanding Your Review and Appeal Rights
If you, as a developer, are unsatisfied with a QBCC decision, you have rights. The first step is often to seek an internal review within the QBCC. However, the more powerful and definitive step is appealing the decision to QCAT (the Queensland Civil and Administrative Tribunal). It is crucial to understand that QCAT hears the matter "de novo," or afresh.
This means the Tribunal is not simply reviewing the QBCC inspector's process; it is hearing the entire case again, considering all evidence and making its own independent decision. The inspector's initial assessment is not binding on the Tribunal.
When to Escalate to the Queensland Civil and Administrative Tribunal (QCAT)
Escalating a building dispute to QCAT is a strategic decision that should be made with clear legal advice, particularly when the commercial value of the rectification work is high and your evidentiary position is strong.
QCAT is a more formal, evidence-based jurisdiction where legal arguments, expert witness reports (from building consultants or engineers), and the strength of your contractual documentation take precedence over the initial, more informal QBCC assessment. This is the point where your proactive efforts in creating a robust paper trail and a clear contractual quality standard become a decisive advantage.
Successfully navigating a QCAT hearing often requires a formal litigation strategy, making expert legal representation essential.
The 2025-2026 Regulatory Landscape: Heightened Scrutiny for Developers
The legal and regulatory environment for construction in Queensland is not static. Recent and upcoming legislative changes signal a clear trend towards greater oversight and accountability, which directly impacts developers. Proactive quality management is no longer just good practice; it's a necessary defence in an era of heightened scrutiny.
How the BIFOLA Act 2024 Changes the Game
The Building Industry Fairness (Security of Payment) and Other Legislation Amendment Act 2024 (BIFOLA), which commenced in mid-2024, significantly increases the QBCC's governance and oversight powers. While much of its focus is on strengthening the Building Industry Fairness (Security of Payment) Act and trust account requirements, the broader implication for developers is clear.
The legislation signals a trend of heightened regulatory scrutiny on all parties in the contractual chain, including principals. Diligent contract administration, fair dealing, and meticulous quality control are now more important than ever to avoid attracting the regulator's attention in a potential QBCC amendment or review.
Preparing for a More Data-Driven QBCC
Looking ahead, the QBCC and Other Legislation Amendment Bill 2025 indicates that the regulator is moving towards a more modern, data-driven enforcement model. Initiatives like digital licensing, streamlined safety notifications, and enhanced data collection capabilities will give the QBCC unprecedented insight into the performance of every project and licensee in Queensland.
In this environment, developers who are frequently involved in defect disputes, even if they are the complaining party, may be flagged for review. This makes it commercially crucial to manage quality proactively and build strong contractual frameworks to resolve issues early, rather than relying on reactive regulatory intervention.
Your Path Forward
The statutory warranty requiring work to be carried out "in an appropriate and skilful way" and "with reasonable care and skill" is a developer's most effective legal tool for enforcing the premium quality standards that high-end projects demand. However, this tool is only as sharp as the evidence that supports it.
Its power is magnified when backed by meticulous pre-contractual documentation, specific quality clauses, and a diligent record of site management. In a complex and evolving regulatory environment, where the actions of builders and the satisfaction of end-buyers can have significant financial repercussions, partnering with a specialist legal firm is not a cost but a critical investment in risk management and project success.
FAQs
What is the difference between a structural and non-structural defect for QBCC warranty purposes?
Under the Queensland Home Warranty Scheme, defects are categorised into two types with different warranty periods.
Structural Defects: These are serious issues that affect the structural integrity of the building, such as severe cracking in foundations, walls, or footings, or issues that compromise the building's stability or the safety of its occupants. The statutory warranty period for bringing proceedings for structural defects is six years from the date the work is completed (note: Queensland Home Warranty Scheme insurance coverage extends for six years and six months from the cover commencement date).
Non-Structural Defects: These relate to materials and workmanship, which is where the statutory quality standard (work carried out in an appropriate and skilful way with reasonable care and skill) is most relevant. This includes issues like sticking doors or windows, minor cracking in plasterboard, defective paint finishes, or misaligned tiles. The warranty period for non-structural defects is 12 months from the date the work is completed.
How long do I have to lodge a complaint with the QBCC?
You must act promptly. For non-structural defects, you should lodge a complaint with the QBCC within 12 months of the practical completion date. For structural defects, you have up to six years to commence proceedings under the statutory warranty provisions. It's critical to lodge your complaint as soon as you become aware of an issue and have been unable to resolve it directly with the builder, as these timeframes are strictly enforced.
Can I use the statutory quality warranty for commercial projects?
The statutory warranties discussed in this article, including the warranty requiring work to be carried out in an appropriate and skilful way with reasonable care and skill, are implied by the QBCC Act specifically into contracts for domestic building work. While the principles of good workmanship are expected in commercial construction, they are not automatically enforced by the same statutory warranty scheme. For commercial projects, your ability to enforce quality standards will depend almost entirely on the express terms, conditions, and quality standards defined within your commercial contract. This makes expert drafting of commercial builders contracts even more critical.
What happens if the builder goes into liquidation before rectifying the defects?
This is a significant risk for developers. If a builder becomes insolvent, is wound up, or has their licence suspended for failing to comply with a money order, you may be able to make a claim under the Queensland Home Warranty Scheme. This statutory insurance policy, which the builder pays for at the start of the project, can cover the cost of completing the contracted works and rectifying defective work, up to a certain limit. Navigating a claim can be complex, and seeking advice from a specialist QBCC lawyer is highly recommended.
Is it better to negotiate with the builder first or go straight to the QBCC?
It is almost always advisable to attempt to resolve the dispute directly with the builder first. You should formally notify them of the defects in writing, providing photographic evidence and referencing their contractual and statutory obligations under Schedule 1B of the QBCC Act, including the requirement to carry out work in an appropriate and skilful way with reasonable care and skill. This creates a crucial paper trail. If the builder refuses to rectify the work or fails to respond within a reasonable timeframe, you should then proceed with a formal QBCC complaint. This demonstrates to the regulator (and to QCAT, if necessary) that you have acted reasonably and made a good faith effort to resolve the issue before escalating it.
This guide is for informational purposes only and does not constitute legal advice. For advice tailored to your specific circumstances, please contact Merlo Law
