Building Defects

Building Defects Overview

Bannermans Lawyers’ construction team can provide tailored, commercial, effective legal advice to you in the management of building defect matters.

Protecting Your Asset

Often your home or investment property is one of your most important assets. Accordingly, you should consider consulting a legal practitioner who specialises in building and construction law for advice when determining the best course of action to take when:

Don't Let Your Cladding Statutory Warranties Expire: FAQ's

The NSW Cladding Taskforce has already audited 185,000 buildings across NSW and has issued 33,000 safety letters to building owners and residents recommending certain actions. Out of 2,300 buildings inspected thus far, the Taskforce has identified 425 as high risk.

Esky Apartments, Definition of Flammable Cladding & Lacrosse Fire Legislation

Following the Lacrosse Fire in Melbourne and the tragedy of the Grenfell fire in London, authorities in NSW have now taken action to start addressing the risks arising from flammable cladding.

Owners Beware: Jurisdictional Problems with Agreements to Extend Statutory Warranties

Bannermans Lawyers have for some time been warning Owners to be wary of agreements offered by builders and developers to extend Home Building Act (“HBA”) warranties, to stave off legal proceedings for defective work (sometimes referred to as “standstill agreements”).

Update on the 2% Bond Scheme

Background

Builders and developers of new multi-storey buildings (defined as two or more separate dwellings which exceed three storeys in height) are exempt from having to obtain insurance under the Home Building Compensation Fund (Home Owners Warranty Insurance) under the Home Building Act 1989 (NSW).

A Loophole to 4 Extra Years on an Owners Defects Warranty

The statutory warranty period for “minor defects” under the Home Building Act 1989 (“HBA”) is only 2 years.

However, in a recent case, Hutching v Hope [2019] NSWCAP 59, the Tribunal’s Appeals Panel highlighted the distinction between the limitation periods for statutory warranties, and the limitation period for breach of contract – which is 6 years from the date the cause of action arises.

Cladding Update - Lacrosse Tower Fire Decision: The Importance of Statutory Warranties

The Victorian Civil and Administrative Tribunal (“Tribunal”) handed down an award on 28 February 2019, which ultimately holds the Builder liable for breach of statutory warranties with the Building Certifier, Architect and Fire Design Engineer liable to indemnify the Builder for 97% of the $5.7 million losses assessed to date, which included $100,000 for strata managers fees and $700,000 for increases in insurance premiums.

Building Bonds: A New Regime of Pro-Active Building Defect Management

Divisions 3 (sections 207-211) of the Strata Schemes Management Act 2015 (NSW) (SSM Act 2015) introduces a building bond scheme for new multi-storey buildings (defined as three or more storeys) from 1 January 2018. The defect bond scheme applies to:

Dob Yourself In About Cladding

The NSW Government move to address the risks arising from non-compliant cladding has progressed with the passing of new regulations, which take effect from 22 October 2018.

4 Hot Defect Trends

The strata industry has a long history of dealing with defective building works and there are some usual suspects, such as water penetration and concrete cancer. However, in recent years, some new types of building defect have risen to prominence. In our experience, the following have become particularly problematic:

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