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Our building is just over 6 years old and fast approaching the conclusion of the builder's warranty period. In August 2010 a consulting firm was engaged by the OC to provide a defects report. This has been forwarded to the Strata Manager. The SM has tried to contact the builder who has since become difficult to contact. In over a year nothing has happened and the problems are getting worse. There are a number of serious defects that need to be addressed. Should the OC put pressure on the Strata Manager, try and chase the builder independently, or commence a claim on insurance (via the SM?)?
Thanks.
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It's a common problem and one we have too. But our OC management pointed out: “Building defects are not within the standard scope of duties of body corporate managers and any work managers do is chargeable.” And also that: “Pursuing a builder through the legal processes can be very expensive – around $5,000.00 to start the process with a solicitor and expert reports and more than $30,000.00 if a barrister is eventually needed.”
Sadly, after 6 years, the builder is probably not going to do anything unless you start a legal process against him. Ours stopped returning calls etc. The OC has to decide if is worth the cost and effort in taking the legal path. So get some legal advice first. In our case the building defects are costing around $30,000.00 to repair, so taking legal action (which might fail) was not so attractive.
Ideally the builder should co-operate and fix all the defects, free of charge. But that's mostly just a dream.
Really it's the EC that should be directing the matter and making requests of the manager.
Hi All, I would check in all cases the contract between the OC and the SM. What have you engaged them to do?
We recently have pursued our building defects home warranty insurance through our SM. Not sure how they went about it but apart from scope of works, timetable for access and meeting builder on site all else went through SM and insurer. So far we have not needed any legal advice and there have been no extra charges from all the above.
If this is not part of your SM obligations there must be somewhere your builders insurer is listed for you to contact independantly? Council or Land and Titles? Maybe?
Best of Luck,
CBF
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