Should a strata building obtain a full defect report before the warranty expires, or could this lead to liability under updated building codes?
I live in a four-year-old multi-storey strata building. During recent rains, four units experienced water ingress. Our strata manager advised us to commission a full building defect report. Some committee members disagree, as they believe the inspection will be assessed against the current building code rather than the code in effect at the time of construction, which could expose us to unnecessary rectifications and millions of dollars in costs. The strata manager also advised that not commissioning a defect report could void our ability to secure insurance for the building.
Is it common practice for buildings to obtain full defect reports before the warranty period expires? Would such a report make us liable for defects that are not immediately evident but are assessed against revised building codes introduced since construction?
It's standard practice to commission a comprehensive defect report 6–12 months before the expiration of your building's warranty period.
Is it common to get a complete defect report before the building's warranty period expires?
It is strongly recommended to obtain a defect report. There is a statutory warranty period (usually 6 years for major defects and 2 years for minor defects) under the applicable legislation (e.g. Home Building Act 1989 (NSW)). It's standard practice to commission a comprehensive defect report 6–12 months before the end of this period to ensure you identify all latent or hidden defects in time to pursue the builder or developer for rectification.
Failing to obtain a defect report within this window can mean missing the opportunity to claim under the warranty, leaving the owners corporation (OC) to fund repairs themselves.
In your case, I would obtain a defects report as soon as possible. From experience, if four lots have water ingress, other lots may also have issues that are not yet presenting.
Arranging a defect report now ensures that:
- All latent or hidden defects are identified early
- The owners corporation (OC) preserves the right to claim against the builder or developer
- You meet your duty of care to lot owners
Would a report make you liable for defects that are not immediately evident based on revised building codes since construction?
No. A defect report does not retroactively impose liability for code changes introduced after construction.
Defects are assessed based on the standards and codes that applied at the time of construction. Your consultant should assess the building against the NCC and relevant Australian Standards that were in force at the time of completion, not today's codes.
However, if something poses a safety risk, e.g. fire separation, waterproofing failure, or structural inadequacy, the report might identify this as a defect or non-compliant condition regardless of when the code changed. This is to protect the safety of residents, not create unnecessary cost.
Water never gets better over time. It only spreads, weakens, and destroys. Here's why immediate action is so important:
- Structural implications: Water in walls, slabs or cavities can damage reinforcement, corrode fixings, cause concrete spalling and framing damage
- Mould and health risk: Moisture buildup leads to mould, which affects indoor air quality and resident health.
- Escalating costs: The longer you wait, the more destructive water becomes.
- Insurer notification: If you're aware of water ingress but fail to investigate and notify your insurer properly, you risk losing insurance.
- Falling property value: Buyers are increasingly wary of water-damaged buildings. The longer defects are visible, the more they erode the market value of the apartments.
Log in to your existing Lookupstrata Account to download the printable file.
Sam is the Founder and Director of PASG Projects, a leading project management and structural engineering consultancy delivering building remediation projects across Australia.
PASG specialises in assisting Owners Corporations, strata managers, and commercial building owners with the remediation of structural, waterproofing, façade, and combustible cladding defects. Supported by an experienced team of project managers and structural engineers, PASG provides end-to-end services including defect investigations and reporting, scope development, tender management, contract administration, and superintendent services throughout project delivery.
With more than two decades of experience in the construction industry, Sam has spent the past decade exclusively focused on the remediation within the Strata Sector. His practical, process-driven approach ensures projects are delivered efficiently, transparently, and with a strong focus on value for money.
PASG's primary objective is to help committees and building owners achieve the best possible long-term outcomes at the lowest possible cost. Through detailed planning, competitive procurement, expert project oversight, and stakeholder engagement, the team works to minimise risk while maximising the lifespan and performance of building assets.
PASG has developed a reputation for delivering technically complex remediation projects using industry-leading systems, specialist expertise, and best-practice project management methodologies. The company continues to invest in the professional development of its project management and structural engineering teams to remain at the forefront of the building remediation sector.
As a trusted advisor within the strata and construction industries, Sam is also committed to educating owners, committees, strata managers, and building professionals on building defects and remediation strategies. By helping stakeholders identify and address issues early, PASG assists clients in reducing long-term costs, limiting disruption, and protecting the value of their assets.
Lookupstrata Directory
Looking for NSW Strata Specialist in your area? Search within our LookUpStrata Directory for the best list of contacts available
Search the directory
Comments
Log in to leave a comment