A water stain appears on a ceiling.
A crack forms in a basement wall.
An owner mentions a balcony that “doesn’t quite feel right”.
None of these issues appears urgent. Yet some of the most expensive building defect claims begin with symptoms that initially appeared minor and manageable.
The issue is raised at a committee meeting, noted in the minutes, and discussion is deferred pending further information.
Three months later, the issue is raised again.
Then again.
Before long, years have passed.
For many owners corporations, this is how building defect claims are lost, not because the defects were hidden, but because nobody appreciated how quickly time was running out.
The Silent Countdown
One of the greatest misconceptions in strata is that a building defect only becomes a problem when it becomes serious.
In reality, the clock often starts long before the defect is discovered.
Water continues to penetrate. Damage continues to spread.
By the time an owners corporation decides the issue is serious enough to investigate, it may discover that the defect is larger than expected, the rectification costs have multiplied, and the critical legal rights are approaching expiry. In many cases, the cost of delay far exceeds the cost of obtaining expert advice in the first place.
Under Victorian legislation, claims relating to defective building work are generally subject to a 10-year long-stop limitation period running from the issue of the occupancy permit or certificate of final inspection. Once that period expires, rights can be lost regardless of how significant the defect becomes or when it was discovered.
The consequence is simple: while committees debate whether an issue is worth investigating, the limitation period continues to run.
The building does not pause.
The defect does not pause.
The clock does not pause.
Why Owners Corporations Delay
Most committees do not ignore defects deliberately.
The reality is that owners corporations are required to make collective decisions, often with limited budgets and competing priorities.
Committee members are understandably reluctant to spend money investigating what may turn out to be a minor issue. Lot owners may question the need for expert reports where damage appears cosmetic. Managers are often balancing competing views from stakeholders who have very different risk appetites.
The result is a cycle familiar to many strata professionals:
Monitor the issue.
Wait for more information.
See if it gets worse.
Revisit it at the next meeting.
Unfortunately, by the time the issue is undeniably serious, the options available to the owners corporation may be significantly reduced.
The Cost of Waiting
Early investigations are frequently viewed as an expense.
In reality, they are often one of the most cost-effective investments an owners corporation can make.
A properly scoped expert investigation can identify whether an issue is:
- a maintenance problem;
- an isolated defect;
- evidence of a broader systemic issue;
- a safety concern; or
- something requiring urgent legal consideration.
More importantly, an investigation provides certainty.
Without expert advice, committees are often making decisions based on assumptions rather than evidence.
The question should not be “Can we afford to investigate?”
It should be “Can we afford not to?”
Small Symptoms Can Reveal Large Problems
Some of the most significant defect claims begin with seemingly minor complaints.
A recurring leak may indicate widespread waterproofing failures.
A cracked wall may reveal structural movement.
A loose balcony tile may expose more extensive construction defects.
By the time visible damage becomes widespread, rectification costs have often increased dramatically and critical evidence may have been lost.
Owners corporations should be particularly cautious where they observe recurring water ingress, widespread cracking, façade deterioration, fire safety concerns, balcony defects, roof failures or repeated complaints relating to the same building element.
These issues do not necessarily mean a major defect claim exists.
They do, however, justify asking whether further investigation is required.
Information Creates Options
Obtaining an expert report does not mean litigation is inevitable.
In fact, many investigations confirm that issues can be managed through maintenance programs or targeted repairs.
The real value lies in understanding the problem early enough to make informed decisions.
When owners corporations act early, they preserve options.
When they wait, those options can disappear.
The Question Every Committee Should Ask
Perhaps the most important question for any committee is not whether a defect exists.
It is whether enough has been done to understand the risk.
Because while committees may meet every few months, building defects continue to develop every day.
By the time a defect becomes impossible to ignore, it may already be too late to preserve every available remedy.
© Bugden Allen Group Legal Pty Ltd. This is general information only and not legal advice. You should not rely on this information without seeking legal advice tailored to your specific circumstances.
Julia Moroz
Bugden Allen
E: julia@bagl.com.au
P: 03 8582 8100
This post appears in Strata News #805.
This article has been republished with permission from the author and first appeared on the website.
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