Major vs Minor Defects
Major vs Minor Defects in Industrial Shed Construction (Queensland)
Defining “Minor” vs “Major” Defects in Industrial Construction
In Queensland’s construction industry, defects are generally classified as major or minor. A major defect is typically one that compromises the structural integrity of the building, poses a safety risk, or fundamentally impairs the building’s intended use. In other words, a major defect might risk serious damage to the shed (e.g. structural collapse or failure) or prevent the facility from being used as designed. Examples of major defects in an industrial shed could include significant foundation cracks, failures in steel framing connections, or a roof installation so faulty that it allows major water ingress affecting structural components. By contrast, a minor defect is any issue that does not meet the threshold of a major defect. Minor defects tend to be cosmetic or functional annoyances that don’t threaten the building’s stability – for example, surface imperfections, sticking doors or windows, small leaks in non-critical areas, or other finish-related faults. In summary, if a problem endangers the structure or usability of the shed, it’s treated as a major defect; if it’s more of a superficial or easily remedied issue, it’s considered minor.
Statutory Warranties and Defect Liability Periods under QBCC Rules
Under Queensland law and Queensland Building and Construction Commission (QBCC) rules, the classification of a defect directly impacts how long the builder is legally obligated to fix it (the statutory warranty or liability period). Major (structural) defects carry a much longer statutory warranty, while minor defects are subject to a shorter timeframe for claims. In practice, the key time limits are:
Major defects (structural): The builder is responsible for rectifying these for up to 6 years and 6 months from the date of practical completion. This extended period recognizes that serious structural problems might only become apparent over time. For instance, QBCC guidelines give homeowners up to six years to discover a structural issue and a further 3 months to lodge a complaint, effectively 6y6m of coverage.
Minor defects (non-structural): The builder’s liability for these is generally limited to 12 months from practical completion. Minor issues are expected to be identified and reported soon after finishing the project. In fact, QBCC’s home warranty guidance requires non-structural defects to be reported within 7 months of completion to preserve the ability to claim (reflecting a 6-month basic period plus a short grace period).
Within these statutory periods, builders are obliged to remedy defects, and the QBCC can step in to enforce these statutory warranties if necessary. For example, if a builder refuses to fix a major defect reported within the 6‑year window, the QBCC can issue a direction to rectify, ensuring the issue is addressed. Conversely, once the respective period expires, the statutory warranty protection lapses – the QBCC generally will not issue defect rectification orders beyond these timeframes. This means that defects emerging or reported late (after 6.5 years for major defects, or after about 1 year for minor defects) fall outside the QBCC’s statutory enforcement period. Owners would then have to rely on other legal avenues (such as a breach-of-contract lawsuit, subject to the normal 6-year limitation on contract claims) or bear the cost of repairs themselves. In short, under QBCC rules major defects are treated with a long warranty period due to their severity, whereas minor defects have a short window for correction, aligning with the expectation that they are apparent and addressed quickly.
Note: The above timeframes and QBCC involvement are often discussed in the context of residential buildings and Queensland’s Home Warranty Insurance scheme. Industrial or commercial projects (like an industrial shed) are not covered by the QBCC home warranty insurance, but the same defect classification and builder liability periods apply to any QBCC‐licensed work. In other words, even for an industrial shed, a licensed builder can be held responsible by the QBCC to fix structural defects for up to 6 years (assuming the issue is reported in time). The key difference is that for non-residential construction, there isn’t an insurance payout if the builder disappears – however, the regulatory warranty obligations (and the threat of QBCC disciplinary action for not rectifying defects) still provide protection to the owner within those periods.
Industry Standards and Typical Contractual Practices for Industrial Sheds
Aside from the statutory QBCC framework, industry standard contracts and practices also address defect rectification in industrial construction. Most commercial building contracts include a Defects Liability Period (DLP) – a contractual warranty period after completion during which the contractor must return to fix any defects that arise. This period is typically around 12 months from practical completion for straightforward building projects, and industrial shed contracts are no exception. It is common, for example, for an industrial shed contract to stipulate a 12-month defects liability period covering all defects (usually both minor and major) that are identified in that timeframe. During this DLP, the owner can compile a list of defects (often at the end of the period, known as a “defects list” or “maintenance list”) and the builder is obliged to rectify them at no additional cost. In some cases, contracts allow for an extension or renewal of the DLP for particular items if they were fixed during the period and later fail again. Also, many contracts withhold a portion of payment (retention money or bank guarantees) until the DLP ends, to ensure the builder has incentive to return and fix outstanding issues.
It’s important to note that a contractual DLP does not replace or reduce the statutory warranty rights provided by law. For instance, if a serious structural flaw in the shed is discovered 3 years after completion (well after the 12-month DLP ended), the owner may no longer have a contractual right to free rectification by the builder under the contract’s DLP terms. However, that owner can still seek remedy under Queensland’s statutory framework, since a major defect is within the 6-year statutory warranty period. In practice, for industrial projects, an owner would first rely on the contract’s DLP for any issues noticed in the first year, and thereafter rely on the general law (and QBCC’s powers) for latent defects that surface later. Standard industry contracts for commercial work (e.g. Australian Standard AS 2124/AS 4000 or bespoke contracts) usually do not differentiate between minor and major defects within the DLP – the builder must fix all reported defects during that period. But they implicitly recognize that truly serious defects might arise later; those remain the builder’s responsibility under law even if the formal DLP has expired. Moreover, industry standards of workmanship (such as the QBCC’s Standards and Tolerances Guide) set the quality benchmarks and time limits for defect recognition. For example, certain minor imperfections are only deemed “defects” if reported within the first 12 months of completion, whereas anything that compromises health and safety can be deemed a defect for 6 years or more. These standards align with the minor/major (non-structural/structural) distinction and are incorporated into both contracts and statutory expectations.
In summary, typical practice for industrial sheds is to have a one-year defect liability period by contract for immediate issues, and to rely on Queensland’s longer statutory warranties for any major problems that emerge subsequently. Builders often also pass through manufacturers’ warranties for components (e.g. a steel supplier’s guarantee or a roof sheeting warranty), but those are additional benefits separate from the core builder obligations. The crucial point for both builders and owners is that major defects remain a liability for many years under statute, and no contract clause can easily waive that away, whereas minor defects are expected to be found and fixed quickly, either before or just after the project handover.
Key Considerations for Builders and Owners Regarding Defect Liability
Both owners and builders of industrial projects should be proactive and informed about defect classification and the associated timelines for rectification:
For Owners (Developers/Clients)
Understand your warranty periods: Know that minor defects generally have a 12-month window, while major structural defects are covered for six-plus years. Mark the date of Practical Completion (PC) of your shed, since the clock for these periods starts from the PC date.
Inspect and notify early: Don’t wait to report problems. Conduct thorough inspections as the project nears completion and during the defects liability period. If it’s a large or complex shed, consider getting a professional defect report or inspection before the 12-month mark, and again around the 5-6 year mark for structural issues. This helps ensure you catch defects well before the warranty expires, allowing time for action. Notify the builder in writing of any defects as soon as you notice them, and keep a record of all correspondence.
Lodge complaints within QBCC deadlines: If the builder is unresponsive to fixing a defect, you can seek QBCC’s help – but be mindful of the strict timeframes. For structural (major) defects, the QBCC advises lodging a complaint within 3 months of discovering the issue, and for non-structural (minor) defects, within 7 months of completion of the work. Delaying beyond these periods can void your options for QBCC intervention.
Use contract and legal avenues appropriately: During the contract’s defect liability period (e.g. first 12 months), use the contract mechanism to have the builder rectify issues. After that, if a serious defect comes to light, remember the statutory warranty still protects you – you may pursue a QBCC statutory warranty claim for rectification. If that fails or if the time has run out, a legal claim for breach of contract might be possible (generally within 6 years of completion for contract claims). Always seek professional legal advice if dealing with major latent defects or if you’re nearing the end of the statutory period with unresolved issues.
Maintain the building: Keep in mind that not every issue is a “defect” the builder must fix years down the track. After warranties expire, upkeep is usually on the owner. Even during the warranty period, owners should perform routine maintenance (e.g. cleaning gutters, tightening door hardware) – neglect or wear-and-tear isn’t usually covered as a defect. Proper maintenance can also prevent minor issues from escalating into major problems.
For Builders (Contractors)
Build to high standards, especially structurally: Recognize that any major structural or safety-related defect in your work can haunt you for over six years. Ensure compliance with all relevant codes and standards (e.g. the National Construction Code and Australian Standards) to avoid structural defects. Using quality materials and skilled workmanship is critical, as major defects (foundation settling, structural steel failures, etc.) will be your responsibility to fix for a long time.
Address minor defects promptly: During the defect liability period, be diligent in correcting all minor issues brought to your attention. It’s standard industry practice to respond quickly to the client’s defect list and do a final round of touch-ups or repairs near the end of the DLP. Promptly fixing cosmetic and functional issues not only fulfills your 12-month warranty obligations but also maintains good client relationships and reputation.
Educate and communicate with the client: Set clear expectations with the owner about what constitutes a defect versus normal building behavior. For instance, minor paint touch-ups or hairline concrete shrinkage cracks may occur – explain the industry tolerances and that you will address genuine defects. Encourage the client to report problems as they see them. A cooperative approach can prevent disputes – it’s easier to fix a dozen small issues at once than to have an unhappy owner escalate a complaint to the QBCC.
Document and follow contract procedures: Follow the contract’s defect resolution procedures – for example, require that all defect claims be in writing, and keep records of how and when you rectified each item. This documentation can protect you if there’s later a dispute about whether something was fixed or if a new issue is actually an owner-caused problem. Also diarize the end of the defects liability period and proactively schedule an inspection or meeting with the owner around that time to catch any last concerns.
Be mindful of QBCC oversight: Even on commercial projects, the QBCC can get involved if a serious defect is reported within the statutory period. Failing to rectify legitimate defects can lead to QBCC issuing a direction to rectify and possibly disciplinary action against your builder’s licence. It’s in your interest to resolve issues directly and not let them escalate. In short, treating minor defects seriously and preventing major defects through quality work are the best ways to avoid warranty disputes and liabilities.
Conclusion
In the context of industrial shed construction in Queensland, distinguishing between minor and major defects is not just a semantic exercise – it determines the warranty coverage and legal recourse available. Major defects (structural or safety-related issues) carry a long-tail liability (about 6½ years) under QBCC statutory warranties, reflecting their potential to affect the building’s integrity. Minor defects (cosmetic or lesser issues) are expected to be identified and fixed quickly, typically within the first year. Owners and builders alike should align their practices with these timeframes: owners must be vigilant in inspecting and reporting defects within the allowed periods, and builders must deliver workmanship that minimizes defects and respond promptly when issues arise. By adhering to both the statutory requirements and the industry’s contractual norms, builders and owners can ensure that any defects in an industrial shed are rectified in a timely manner and with minimal conflict, thereby safeguarding the value and functionality of the asset over the long term.
Sources: Queensland Building and Construction Commission (QBCC) guidelines and policy interpretations; industry legal commentary by Queensland construction lawyers; and standard construction contract practices. These sources reflect current (2024-2025) Queensland standards for defect classification, warranty durations, and liability in the construction of industrial structures.
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For more information, please contact Gavin McInnes on 07 3367 8681 or gmcinnes@grmlaw.com.au.
The information contained in this article is general in nature and cannot be regarded as anything more than general comment. Readers of this article should not act on the basis of this comment without consulting one of GRM LAW 's legal practitioners who will consider their particular circumstances.
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