The Design & Build Journey

After Handover: Defects, Maintenance and the First Twelve Months

By Daryl Combes23 July 20269 min read
After Handover: Defects, Maintenance and the First Twelve Months
Quick Answer

Handover is not the end of your builder’s obligations. Under the Building Act 2004, if you notify your builder of a defect within twelve months of the work being completed, they must remedy it, and the burden sits with them rather than you to show the work was not defective. Separately, there is a ten-year longstop for bringing building defect claims (MBIE). Code Compliance Certificate is the council confirming the work complies with its building consent, not a guarantee of quality or a warranty. The first year is also when a new home does its settling and drying, so knowing which things are defects and which are normal saves everyone grief.

Key Questions Answered

What does a Code Compliance Certificate mean?

It is the council confirming the completed work complies with the building consent that was issued (Building Act 2004). It is a regulatory sign-off, not a warranty and not a statement that the workmanship is good.

How long do I have to report defects?

Notify your builder within twelve months of completion and they are required to remedy the defect, with the onus on the builder rather than you to show the work was not defective (MBIE). A separate ten-year longstop applies to bringing claims.

What counts as a defect?

Work that does not meet the contract, the plans or the Building Code. Normal timber shrinkage, minor settling cracks in plasterboard joints and doors needing a seasonal adjustment are usually not defects, they are a new building drying out.

What maintenance is my responsibility?

Everything ordinary: cleaning gutters, washing cladding where specified, servicing ventilation filters, checking seals and drainage. Some guarantees require this maintenance to be done, so neglect can affect your cover.

How should I raise a defect?

In writing, promptly, with photographs and a clear description, rather than mentioning it in passing. A written record protects you and gives the builder something specific to act on.

Key Takeaways

  • Code Compliance Certificate confirms compliance with the building consent; it is not a quality warranty (Building Act 2004).
  • Defects notified within twelve months of completion must be remedied by the builder, with the onus on them to show the work was not defective (MBIE).
  • A separate ten-year longstop applies to bringing building defect claims.
  • Normal shrinkage, hairline settling cracks and seasonal door adjustment are usually not defects; a new home dries and moves in its first year.
  • Ordinary maintenance is the owner’s job and some guarantees depend on it being done, so keep records.

What does Code Compliance actually mean?

A Code Compliance Certificate is the council stating that, on the basis of the inspections it carried out, the completed work complies with the building consent it granted (Building Act 2004). That is a meaningful regulatory step and you need it, particularly for your lender and for any future sale. What it is not is a warranty, a quality assessment, or anybody’s opinion that the workmanship is good.

The distinction matters because people relax at CCC and assume the protection ends there. In fact your real protections are three separate things: the building contract, the warranties implied by the Building Act, and any guarantee you hold such as Master Builders or Certified Builders. The council sign-off sits alongside those rather than replacing them. Our guide to the consent process covers how CCC is reached.

What is the twelve-month defect period?

It is the most useful protection most homeowners do not know they have. Under the Building Act, if you notify your builder of a defect within twelve months of the building work being completed, the builder is required to remedy it. Critically, during that period the onus sits with the builder to show the work was not defective, rather than with you to prove that it was (MBIE). After twelve months the implied warranties still apply and there is a ten-year longstop for bringing a claim, but the burden of proof shifts to you.

PeriodWhat applies
At completionCode Compliance Certificate issued by council
First 12 monthsNotified defects must be remedied; onus on the builder
After 12 monthsImplied warranties continue; onus shifts to the owner
Up to 10 yearsLongstop period for bringing building defect claims
ThroughoutAny Master Builders or Certified Builders guarantee you hold

The practical consequence is simple: walk your home deliberately in the first year and report anything you find, in writing, while the onus is still where it helps you most.

Is it a defect, or is the house just settling?

Both happen, and telling them apart keeps the relationship healthy. A defect is work that does not meet the contract, the plans or the Building Code: a door that was never adjusted properly, a leak, joinery that was not installed as specified. Normal first-year movement is different. A new home dries out, timber shrinks slightly, and you get fine cracking at plasterboard joints, small gaps opening at skirtings and architraves, and doors that need a seasonal adjustment as humidity changes.

Report both anyway. Put the settling items on the list too, so they are on record and can be dealt with in a first-year touch-up rather than argued about later. A builder who expects that conversation will have planned for it; we treat the first-year visit as part of the job rather than an imposition.

What maintenance is yours to do?

The ordinary things, and they matter more than people assume because guarantees often depend on them. Gutters and downpipes cleared. Cladding washed where the manufacturer specifies it, particularly in coastal environments where salt accumulates. Ventilation filters changed on schedule. Seals, flashings and drainage checked. Decks and exterior finishes maintained per the specification.

Master Builders and Certified Builders guarantees, and most product warranties on roofing, cladding and joinery, assume that specified maintenance has been carried out. Keep a simple record, a note of what you did and when, because a claim is far easier to make when you can show the house was looked after. Coastal owners should read this alongside building a holiday home, where the maintenance stakes are higher because nobody is there to notice.

How should you raise things, and what should you get at handover?

In writing, promptly, with photographs and a plain description of what you are seeing and where. Not because anyone expects a fight, but because a written record gives the builder something specific to act on and protects you if memories differ a year later. Batch minor items into a list rather than sending them one at a time, and flag anything urgent, particularly water, immediately rather than waiting for the list.

At handover, make sure you leave with the Code Compliance Certificate, guarantee documentation, product warranties and manuals, as-built information where relevant, a written maintenance schedule, and a clear answer to who you contact about defects and how. Ask for it as a package. A builder who hands that over without being chased is telling you something reassuring about how the next twelve months will go, which is part of what the questions to ask before you sign is designed to surface early.

What is the bottom line?

Code Compliance is the council confirming the work matches its consent, not a quality guarantee. Your strongest protection is the twelve-month period after completion, when notified defects must be remedied and the onus sits with the builder, with a ten-year longstop behind it. Walk the house deliberately in that first year, report in writing, and expect some normal drying and settling alongside any genuine defects.

Do your side of the maintenance and keep a record of it, because guarantees assume it. If you are building with us in Nelson Tasman, the first-year check is something we plan for rather than something you have to chase, and we would rather hear about a small thing early than a large one late.

Frequently Asked Questions

Is Code Compliance a guarantee my house is well built?

No, and this is a common and costly misunderstanding. CCC is the council confirming the work complies with the consent it granted, based on the inspections it carried out. It is a regulatory step, not an assessment of workmanship quality or a warranty. Your protection comes from the contract, the Building Act warranties and any guarantee you hold.

What exactly is the twelve-month period?

Under the Building Act, if you tell your builder about a defect within twelve months of the building work being completed, they are required to fix it, and during that period the onus sits with the builder to show the work was not defective rather than with you to prove it was (MBIE). It is a genuinely useful protection and it is why the first year matters.

What happens after twelve months?

The implied warranties under the Building Act still apply, and there is a ten-year longstop for bringing a claim relating to building work. What changes is the onus: after the first twelve months it is on you to establish the defect, which is why raising things early and in writing is worth the small effort.

My plasterboard has hairline cracks. Is that a defect?

Usually not. A new home dries out and moves slightly in its first year, and fine cracking at plasterboard joints, small gaps at skirtings and doors needing an adjustment are normal parts of that. Report them anyway so they are on record, and expect them to be dealt with as part of a first-year touch-up rather than as failures.

Do I have to do maintenance to keep my guarantee?

Often yes. Master Builders and Certified Builders guarantees, and many product warranties on cladding, roofing and joinery, assume the specified maintenance has been carried out. Keep a simple record of what you have done and when, because a guarantee claim is much easier when you can show it.

What should I ask for at handover?

The Code Compliance Certificate, your guarantee documentation, warranties and manuals for installed products and appliances, as-built information where relevant, and a written maintenance schedule. Ask who to contact for defects and how, and get it in writing rather than as a name and a mobile number.

Test Your KnowledgeQuestion 1 of 6
What does a Code Compliance Certificate confirm?
Score: 0/0

Research Report: The First Twelve Months After Handover

Read Full Report

Statutory protections, defect classification and owner maintenance obligations.

Planning a build in Nelson Tasman?

Talk to Ecotectural early and keep control of your design and budget from day one.

Arrange a consultation
Arrange a consultation