Question: Who is responsible for accommodation costs when a lot owner vacates for a builder to carry out repairs under warranty?
The builder is replacing the laminate flooring installed during construction. The same flooring was installed in all units.
Some 70 of 325 owners have reported delamination or movement due to an uneven slab. In most cases, repair is not an option given the extent of delamination.
The developer is an international company that operates globally and the builder is a large Australian company that operates nationally.
Who is responsible for accommodation costs when a lot owner vacates for a builder to carry out repairs under warranty?
Answer: Lot owners may have rights against the builder for the displacement costs
Lot owners are responsible for the maintenance of their lot – which would extend to the flooring within the lot. Each lot owner may then have rights as against the builder for the defects in any flooring to be remedied depending on the terms of the construction contract between the builder and the developer and any rights that can be pursued through the QBCC.
Assuming the builder is responsible for remedying those defects, the lot owners may also have rights to consequential damage against the builder (such as displacement costs). However, this will depend on the specific terms of the construction contract and what can be negotiated with the builder.
Todd Garsden Mahoneys E: tgarsden@mahoneys.com.au P: 07 3007 3753