Building Defects

Aluminium Cladding - Dealing with the NSW Cladding Taskforce Request

In the wake of the devastating London Fire, NSW Fair Trading is finally taking action concerning non-compliant aluminium cladding.  It has formed the NSW Cladding Taskforce and is writing to owners in the form of the attached letter requesting owners to among other things:

Problems Associated With Builders Fixing Defects Without a Contract to Perform the Works

Fixing Defects – Should you let the builder back without a contract?

A fairly common scenario, which can cause a lot of problems for owners corporations, is when the original builder comes back to rectify building defects, without a contract to do that work. It is fairly easy to find oneself in that situation. The owners corporation will typically have been on the builder’s back for some time to fix problems and prefer a casual response from the builder to no response at all. The builder will typically have moved on to other things and not be keen to come back to do rectification work, let alone incur legal costs creating a contract do so. Both may be under the false impression that the rectification work will be covered by the original contract.

Should New Owners Corporations Obtain Building Defects Reports?

Short answer is yes, Why?

  1. For the reasons set out below in the UNSW research, which are supported by our experiences below.
  1. Pre-purchase inspection reports obtained by lot owners concern their own individual lots and usually do not involve an inspection of the whole of the building. It is neither the strata manager’s nor the caretaker’s role to report on defects in the common property

Don't Delay the Implementation of the 2% Defects Bonds Scheme Under Part 11 of the Strata Schemes Management Act 2015

In response to well founded rumours that the 2% bond scheme is going to be further delayed we have written the following letter to the Minister for Innovation and Better Regulation, Matthew Kean.

Deadline 21 March 2017 – Closing Date for Submissions on the Draft Australian Standard for Defects in Group Title Buildings

Further to recent implementation of the Strata Schemes Management Act 2015 a new Australian Standard for defect report reports for group title buildings has been developed and public consultation is occurring and submissions close on 21 March 2017.

Discovery of Defects or Missing Items After Purchasing a Unit

Owners often find themselves in the position where they purchase a unit off the plan, only to discover that there are items missing or there are defects present (i.e. cracking to the cupboards).

Building defects - What You Need to Know

Under the new strata law reforms, owners corporations have to consider building defects and rectification at each annual general meeting (AGM).

However this only applies until the expiry of the warranty periods for the applicable statutory warranties.

It is also different to the new building defects bond scheme which starts on 1 July 2017 (see more below).

Commencing Legal Action Against Subcontractors

Changes brought about by the Home Building Amendment Act 2014 (NSW) to the Home Building Act 1989 (NSW) mean that owners corporations can arguably commence legal action against subcontractors (who are solvent) for breach of statutory warranties where the building contract between the builder and developer was entered into after 1 March 2015.

Strata Reform: Building Defects - What You Need To Know

  • Owners corporations should be aware that on or from 30 November 2016, the strata reform requires owners corporations to consider building defects and rectification at each annual general meeting until the expiry of the warranty periods for the applicable statutory warranties.

Building Defects Case Note: The Importance of Being...Armed with Timely Legal and Expert Advice

Building Defects – Lessons from the ACT experience

ACT owners corporations are experiencing the same practical difficulties as NSW when dealing with building defects. 

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