At Premier Strata we specialize in the management of Building defects and with 85% (97% in NSW as quoted by Engineers Australia) of newly built Strata lots containing defects from the time of construction, defects require urgent and thorough action by the best experts within strict timeframes.
The point of difference with Premier Strata is our independence. We have no connection with builders or developers of Strata properties as all our business is Referral based and comes via word of mouth direct from unit owners.
Due to our independence, our allegiance is always to our lot owners and we can thus assure you of our full support in getting the best results for you in managing your “Building Defects”
Premier aligns itself with only the best like-minded results driven defect experts. Your defects team includes specialist engineers, lawyers, defects managers and is spearheaded by Premier’s in -house Defect Specialists.
Premier Strata has successfully worked on some of NSW’s largest defect matters and with our high attention to detail, owners feel safe in the knowledge that their defect issues are being prioritized.
A building defect is confirmed as an issue if it is a result of defective design, faulty workmanship, substandard materials or non-compliance with the structural performance requirements of the National Construction Code.
In Australian the law differentiates between two types of defects. Anything that does not render a building uninhabitable or dangerous to live in is considered a minor defect. This includes things like hairline cracks, stained walls, or loose tiles.
Major defects are those that pose a significant risk to the habitability of your building, such as structural issues that were identified at Opal Towers, Fire safety risks or Major problems with waterproofing.
Who is responsible for what defects?
Generally, for a pre-determined period of time, the builder who carried out the defective work is liable to correct the defects at no extra cost to the owners corporation. However, there are situations where a builder attempts to avoid their responsibility, goes bankrupt or into administration or simply disappears. In these cases, the developer could also be held liable for rectifying the defects. Under new legislation, developers are required by law to set aside 2% of the project costs as a “bond” to cover exactly these types of repairs.
With Building defects, time is of the essence. There are certain statutory warranties in place to protect owners from having to bear the cost of defective building works immediately after completion. The period in which the developer or builder is responsible for correcting minor defects is two years, while it is six years for major defects.
What your next steps should be
The Owners Corporation has the following 3 main options to resolve a building defect issue:
1. Commence proceedings against the Builder and/or Developer in pursuant to the statutory warranties under the Home Building Act 1989.
2. Negotiate and enter into Deed or Agreement with the Builder and/or Developer agreeing to rectify the defects either by the Builder and/or Developer taking responsibility for rectification works to the satisfaction of the Building codes and Australian standards or to pay an amount of compensation to the Owners Corporation.
3. Undertake rectification work at the expense of the Owners Corporation by raising funds to adequately pay for the rectification works.
As soon as a lot owner discovers defective work in their Strata Scheme, they should without delay contact the Strata committee or Strata manager as soon as possible, especially if the defect looks major. The Owners Corporation through the Strata committee with assistance from the Strata Manager and team of experts will then obtain the necessary reports on the caused for the issues/defects and raise with the Builder and/or Developer to rectify the defect.
Other actions available to the Strata Scheme
In addition to having recovery rights under Home Building Act 1989 the Owners Corporation may also have rights pursuant to the Design and Building Practitioners Act 2020 and/or the Owners Corporation may have rights pursuant to the law of misleading and deceptive conduct (subject to independent legal advice)
If your building contains Defects and you believe that you have a chance of getting the defects in your Strata Scheme dealt with in a fair and diligent manner, please contact Anthony Votano (General Manager) at Premier Strata Management on firstname.lastname@example.org