For Victorian Owners Corporations and lot owners, knowing the time limits for pursuing building defect claims is critical. These deadlines, known as limitation periods, determine whether your claim can even be heard. Missing one could mean losing the ability to recover the costs of rectification entirely.

Here’s what every committee and strata community should be across.

The General Rule – 10 Years

Under the Building Act 1993, most building defect claims must be lodged within 10 years from the date an occupancy permit or certificate of final inspection is issued.

This applies whether the claim is based on negligence, breach of contract, or another building-related cause of action. Courts have consistently reinforced that this is a strict deadline.

Cladding Defects – A Special 15-Year Period

In recognition of the cladding crisis, Victoria introduced an extended 15-year limitation period for cladding-related claims.
This applies only to buildings with occupancy permits or certificates of final inspection issued between 16 July 2019 and 1 December 2023.

Outside of this timeframe, the usual 10-year limit still applies.

Plumbing Work

Plumbing defects have their own rule. Under the Building Act, claims must be made within 10 years from the date the plumbing compliance certificate was issued.

For insurance purposes, plumbing works are also covered under a separate compulsory insurance scheme, typically allowing claims within 6 years.

Multiple Occupancy Permits – Why Dates Matter

For staged developments where multiple occupancy permits are issued, each stage can have a different limitation period.

The Victorian Court of Appeal has clarified that the clock starts ticking from the first permit relevant to the work in question. This means some sections of a building may reach their limitation deadline much earlier than others.

Owners Corporations should keep detailed records of all permits issued to avoid confusion and risk.

Domestic Building Contracts Act – Extra Steps Before VCAT

Before commencing proceedings in the Victorian Civil and Administrative Tribunal (VCAT), Owners Corporations must first obtain a conciliation certificate from the Domestic Building Dispute Resolution Victoria (DBDRV).

The time limit for referring disputes to DBDRV aligns with the 10-year period under the Building Act. Lodging too close to expiry risks running out of time if the process is delayed.

What If There’s No Occupancy Permit?

If work was completed without a building permit or occupancy certificate, the Limitation of Actions Act 1958 may apply instead. In these cases, the limitation period is 6 years from when the cause of action arose.

This often creates extra complexity, and Owners Corporations should seek specialist legal advice early.

Insurance Timeframes

For eligible contracts, Domestic Building Insurance (DBI) provides backup protection where a builder dies, disappears, or becomes insolvent.

• Structural defects: covered for 6 years from the occupancy permit date.
• Non-structural defects: covered for 2 years.

Claims are managed by the Victorian Managed Insurance Authority (VMIA) and usually need to be lodged within 180 days of becoming aware of insolvency.

Key Takeaways for Owners Corporations

1. Know your dates – limitation periods run from occupancy permits, final inspection certificates, or plumbing compliance certificates.
2. Don’t delay – waiting too long can mean losing the right to claim entirely.
3. Cladding claims get more time – but only for permits issued within a specific window.
4. Multiple permits = multiple deadlines – keep accurate records for staged developments.
5. Insurance may help – but only if claims are made within strict timeframes.

For strata communities, building defects can be one of the most expensive challenges to navigate. Understanding limitation periods is essential to protecting your rights. If your Owners Corporation suspects defects, act early: obtain expert reports, seek advice, and don’t let the clock run out.

At SSKB, we help committees stay informed and prepared – ensuring they understand their responsibilities and take action within the legal timeframes.