Home building disputes can arise when construction is delayed, defects are discovered or a homeowner and builder disagree about whether a new home is actually complete.
A recent NSW Civil and Administrative Tribunal (NCAT) decision, Mughal v Sudhan Pty Ltd [2026] NSWCATCD 99, provides useful guidance for homeowners dealing with building defects, delayed construction and practical completion disputes in NSW.
What caused the building dispute?
The homeowner engaged a licensed builder to construct a two-storey home in Leppington, NSW.
Construction began in May 2022, but the project experienced significant delays. The homeowner eventually commenced proceedings in the NSW Civil and Administrative Tribunal (‘NCAT’) seeking orders relating to alleged defective and incomplete building work, together with compensation for the delayed completion of the home.
By the end of the hearing, the parties had agreed that the builder would rectify several items, including issues with balcony drainage, missing weep holes, damage to the garage slab and defects in bathrooms and a bedroom.
However, NCAT still had to decide several disputed issues, including alleged defective brickwork, the date of practical completion and the homeowner’s claims for compensation.
What is practical completion?
Practical completion is an important concept in many home building disputes.
In simple terms, a home does not necessarily need to be completely defect-free before practical completion can occur. Practical completion occurs when the building work is complete except for minor defects or omissions that do not prevent the home from being reasonably capable of being used for its usual purpose- occupation as a home.
An occupation certificate was issued on 3 October 2024.
NCAT found that the certificate did not automatically prove practical completion. However, it was strong evidence that the property was suitable to be occupied as a home.
The remaining defects were not serious enough to prevent residential use, so NCAT found that practical completion had occurred by 3 October 2024.
When is building work defective?
One of the disputed building defects involved the external brickwork.
The homeowner’s expert considered the brick bond to be defective because it was visually inconsistent. The builder’s expert disagreed.
NCAT accepted that residential building work must meet appropriate standards of workmanship. However, the homeowner still needed to prove that the brickwork was actually defective rather than simply imperfect.
There were no measurements showing the extent of the alleged misalignment. NCAT was also not satisfied that the photographs and expert evidence demonstrated a sufficiently significant problem.
The brickwork claim was therefore dismissed.
For homeowners considering an NCAT building defect claim, this is an important lesson: photographs and a general assertion that work looks wrong may not always be enough. Clear expert reasoning, measurements and objective evidence can be critical.
Can you claim compensation for building delays?
Depending on the building contract and circumstances, a homeowner may be entitled to compensation when a builder fails to complete work on time.
In this case, NCAT calculated 223 working days between the required completion date and practical completion.
However, the builder established extensions of time totalling 64 working days for matters including late progress payments, the Christmas industry shutdown, brick supply delays and delays associated with the homeowner’s roof selection.
That left 159 working days of compensable delay.
Under the contract, liquidated damages were $20 per working day. The homeowner was therefore awarded $3,180 in liquidated damages.
Claims for additional lost rent, interest expenses and utility costs were dismissed because the required evidence and legal basis for those losses were not sufficiently established.
What should you do about a home building dispute?
If you are in a dispute with your builder, it is important to keep detailed records.
Building contracts, variations, invoices, defect reports, photographs, emails, text messages and notices about delays can become important evidence if the dispute proceeds to NSW Fair Trading or NCAT.
You should also obtain legal advice about your rights under your building contract and the Home Building Act 1989 (NSW).
At The Law Office of Conrad Curry, we assist homeowners with home building disputes in NSW, including building defect claims, delayed construction, practical completion disputes, rectification claims and NCAT proceedings.
Contact our friendly team today to discuss your building dispute.
Frequently Asked Questions
What can I do if my builder has left defective work?
Your options depend on the circumstances, your building contract and the nature of the defects. Remedies may include seeking rectification of defective work or pursuing a building claim through NCAT.
Can I take my builder to NCAT?
NCAT can hear certain residential building disputes under the Home Building Act 1989 (NSW). Applicable requirements and time limits will depend on the type of claim.
Can a home be practically complete with defects?
Yes. Minor defects do not necessarily prevent practical completion if the home is otherwise reasonably capable of being used for its intended residential purpose.
Can I claim money if my builder is late?
Potentially. The amount you can recover will depend on matters including the building contract, the period of delay, extensions of time available to the builder and evidence of any additional loss claimed.
Do I need a building expert for an NCAT dispute?
Expert evidence can be particularly important where there is disagreement about whether building work is defective, the cause of a defect or what rectification work is required.
DISCLAIMER
This article reflects the current law at the time of publication. Please note that cases may have been the subject to appeal or subsequent judicial consideration since the date of posting. The decisions referred to are summarised for general understanding only. It is intended for informational purposes only and does not constitute legal advice. For specific legal guidance in relation to your situation, please consult with a qualified legal professional.