Repair Contract with Owners Corporation?

Like many Sydneysiders who have moved into new strata developments ours is riddled with structural faults. It’s a small complex of 12 (townhouses and villas) for over 55’s and none of the owners have deep pockets. We did the right thing, engaged a team of engineers to detail a report on the structural faults as defined by the Act and other issues.  The builder’s insurer lawyers and the developer are giving us the run around wrt our claim. In the meantime roofs leak and bathrooms can’t be used because it would appear there is inadequate or no water proofing.

These are of course Owners Corporation responsibilities to fix but as this is a new development there are insufficient funds to cover the estimated cost of the repairs. We already have levied all owners to pay the not inconsiderable legal fees associated with our insurance claim and engineers report but the overall repair cost of $200,000 is too much for residents to pay immediately with no guarantee our insurance claim will recoup the monies.

Naturally we are also concerned that in making some of the repairs to minimise further damage we may compromise the insurance claim although we do understand there is an obligation to minimise any further damage.

Part of the issue is that the faults in some dwellings are more significant than others.

Have you ever heard of individual owners taking out a contract with the Owners Corporation to have approved repairs paid for by themselves and then to be repaid from the sinking fund over say a defined period of time. The point being that if the claim fails the outlay would not be all that great for some owners but it is nevertheless the Owners Corporation to ensure roof don’t leak etc. and compensation is due.

We are all living in dread with the forecast of storms over this summer.