Question: 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?
Answer: 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.
This post appears in the October 2024 edition of The QLD Strata Magazine.
Bruce McKenzie Sedgwick E: bruce.mckenzie@au.sedgwick.com P: 1300 735 720