A recent Court of Appeal decision has ruled that owners can continue to bring a building action against a builder for up to 10 years from the issue of a certificate of occupancy or of final inspection, providing clarity for builders and consumers alike.

Master Builders Legal Manager, Angelo Simonetto, said that the outcome of the decision did not come as a surprise.

“This is an interesting decision that has really just confirmed the status-quo,” Mr Simonetto said.

“From a legal perspective, it’s important that builders and consumers know where they stand and this decision provides closure and certainty.”

The decision clarifies the ambiguity of conflicting interpretations between recent decisions in VCAT and the County Court in which the time by which a building action could be brought varied from six or 10 years.

The Court of Appeal decision followed the appeal of a County Court decision in which Brirek Industries sued building surveyor, McKenzie Group Consulting for breach of contract.

Victoria’s Building Act 1993 provides for a 10 year limit for aggrieved parties to sue for breach of contract and negligence in a building dispute. It was argued in the County Court that the six years for breach of contract under the Limitation of Actions Act 1958 also applied to building disputes.

The Victorian Civil and Administrative Tribunal had maintained that a building action could be brought within a 10 year limitation period. The decision in the Brierek Industries v. McKenzie Group Consulting now clarifies this position in Victoria.