The development of vibration-based condition monitoring techniques, especially those focused on prognosis, requires the development of better computational models that enable the simulation of the vibratory behaviour of mechanical systems. Gear transmission vibrations are governed by the so-called gear mesh frequency and its harmonics, due to the variable stiffness of the meshing process. The fundamental frequency will be modulated by the appearance of defects which modify the meshing features. This study introduces an advanced model to assess the consequences of defects such as cracks and pitting on the meshing stiffness and other related parameters such as load transmission error or load sharing ratio. Meshing forces are computed by imposing the compatibility and complementarity conditions, leading to a non-linear equation system with inequality constraints. The calculation of deformations is subdivided into a global and a local type. The former is approached by a finite element model and the latter via a non-linear Herztian-based formulation. This procedure enables a reduced computational effort, in contrast to conventional finite element models with contact elements. The formulation used to include these defects is described in detail and their consequences are assessed by a quasi-static analysis of a transmission example.