AustraliaA building company used substandard plumbing and it failed within months. Are there consumer guarantees?
Yes, building companies in Australia must comply with consumer guarantees under the Australian Consumer Law, including guarantees of acceptable quality, due care and skill, and fitness for purpose.
What the Law Says
The Australian Consumer Law (ACL) provides automatic consumer guarantees that apply to services—including residential building and plumbing work—regardless of whether a written contract or warranty exists.
When a building company carries out plumbing work, it is supplying a 'service' under the ACL. This triggers several statutory guarantees that cannot be excluded, restricted or limited—even by contract.
The guarantee of due care and skill (ACL s. 60) means the work must be performed with the degree of care and skill that a reasonably competent tradesperson would exercise. Substandard plumbing that fails within months likely breaches this guarantee.
The guarantee of acceptable quality (ACL s. 54) requires services to be fit for all purposes for which such services are commonly supplied—and to be delivered with reasonable durability. Plumbing that fails quickly is unlikely to meet this standard.
The guarantee of fitness for purpose (ACL s. 55) applies if the consumer made their purpose known to the builder (e.g., 'this system must last 10 years') and relied on the builder’s expertise. If so, the work must be reasonably fit for that purpose.
Statutory TextA person who supplies services in trade or commerce guarantees that the services will be rendered with due care and skill.
— Australian Consumer Law, s. 60 — Guarantee of due care and skill
Statutory TextA person who supplies services in trade or commerce guarantees that the services will be reasonably fit for any purpose for which the consumer tells the supplier the services are required.
— Australian Consumer Law, s. 55 — Guarantee of fitness for purpose
Statutory TextA person who supplies services in trade or commerce guarantees that the services will be of acceptable quality.
— Australian Consumer Law, s. 54 — Guarantee of acceptable quality
What to Do
Gather evidence: photos, reports, invoices, correspondence, and expert opinions confirming the substandard work.
Contact the builder in writing, clearly stating the breach of ACL guarantees and requesting rectification within a reasonable time.
If unresolved, lodge a complaint with your state or territory fair trading agency (e.g., NSW Fair Trading, Consumer Affairs Victoria).
Consider applying to the relevant state tribunal (e.g., NCAT, VCAT) for orders including repair, replacement, refund, or compensation.
Seek legal advice early—especially if the defect is major (e.g., structural or safety-related), as ACL rights coexist with state-based statutory warranties (e.g., 6-year warranty for major defects under the Home Building Act 1989 (NSW)).
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.