chalkline. Snap the line. Build to it.
glossary Glossary 3 min read

Limitation period

A limitation period is the fixed time to start a claim; once it expires the claim is time-barred. NSW warranties run 6 years (major) and 2 years for other defects.

By Dan Waring. Last updated 30 May 2026. Verified 8 May 2026.

Ask Chalkline about this →

A limitation period is the legally fixed time within which a claim must be commenced (started in a court or tribunal). Once it expires, the claim is time-barred: the right may still exist in principle, but it can no longer be enforced. In building, limitation periods govern how long an owner has to bring a defect or breach claim against a builder. They are the reason a builder’s exposure on a finished job is not open-ended, but also why it can run for years after handover.

Different claims have different periods:

  • Statutory warranties (NSW Home Building Act 1989): 6 years for major defects (structural, foundation, waterproofing, fire safety) and 2 years for other defects, both running from practical completion. Subsequent owners inherit the unexpired warranty.
  • DBP Act 2020 (NSW) section 37 duty of care: reaches back to construction completed since 11 June 2010, which reopened a limitation window for defect claims that would otherwise have been time-barred.
  • Other states set their own periods (for example, SA statutory warranties run 5 years, with a 10-year long-stop on economic loss).

For a builder the practical points are: the clock usually starts at practical completion, so date and document handover carefully; major-defect exposure runs longer than most builders assume; and the DBP Act’s retrospective reach means completed Class 2 work since mid-2010 can still attract a claim. Keep your records, photos, and certificates for the longest applicable period, because the statutory warranty or duty-of-care claim that lands years later is defended on the evidence you kept.

Also known as: Time bar, limitation of actions, statute of limitations.

Category: Contracts / Legal and liability.

See also

References

Last updated: 2026-05-30. Verified: 2026-05-08. Quarterly review for currency.

Related articles