We know the Builders Warranty is six and a half years. Our building is relatively new. A few owners have experienced water leaks. Do we wait until the sixth year to obtain a defects assessment report, or should we identify and address potential issues now?
Owners must report issues when known to give the builder the best opportunity to resolve.
It is not recommended to wait 6 years to obtain a report for a number of reasons.
Firstly, if they are known, allowing defects to manifest can be seen as not making a reasonable effort to mitigate further damage and costs. Builders will certainly use this defence and insurers regularly can use this to reject claims.
Owners must report issues when known to give the builder the best opportunity to resolve them.
Also, defect issues can often take some time to resolve, often far more than 6 months. Therefore, it is considered high risk to leave it this long.
It is highly recommended that owners get an independent building inspection report at the following stages (where possible):
- 10 months after completion (before 12 months)
- 3 years after completion (reasonable time for defects to manifest)
- 5 years after completion (reasonable time for builder to demonstrate commitment to rectify before 6 years)
- Periodically up to 5 yearly intervals dependent on the condition of the building and the frequency of issues.
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Bruce McKenzie is National Manager for Commercial Services and Major Projects at Sedgwick's Building Consulting Division, the largest claims management corporation in the world. With over 36 years' experience as a licenced building contractor, Bruce has received multiple state building excellence awards and a National Building Award through Master Builders Australia.
Since joining Sedgwick a decade ago, Bruce has led the growth of its Commercial Services Division, managing major building projects nationally across the insurance and private sectors — including property damage, catastrophe events and large-scale remediation. He has acted as expert witness on high-profile litigation matters, most notably the Lacrosse Tower combustible cladding case, and served as Program Director for Cladding Safety Victoria, overseeing the recladding of over 40 buildings as part of the Victorian Government's $600 million rectification program. In 2022 he commenced a secondment as Program Director for Project Intervene with the NSW Office of the Building Commissioner, addressing serious defects in recently constructed buildings.
Bruce is a licensed builder in NSW, QLD, VIC and ACT, and holds an Advanced Diploma in Building & Construction Management and a Diploma of Project Management.
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