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With a large number of developments completed 4-6 years ago before the GFC put a halt on the industry, there is no doubt that many body corporate committees have had to deal with building defects. Many buildings will be coming to the end of their Builders Warranty Period in the coming months and years. Whether your buildings problems are major or minor it is important to understand the process involved to have building defects rectified before the builders warranty expires. It is vital that there is effective communication with your builder when dealing with any defects. When this is not possible, or your builder fails to respond the Building Services Authority (BSA) is available to provide an effective resolution service.

The Builder's Warranty Period, and the defects for which they are responsible for are split into 2 Categories:

Category 1 - Structural defects

As suggested above these are major defects such as roof leaks, subsidence of building, bath or shower leaks or tiles lifting. The warranty period for these defects (ie, the time by which you must advise your builder that there is a problem) is 6 years and 3 months from the date of "Practical Completion". The date of practical completion is taken from the date that your Certificate of Classification is issued. If you fail to notify your builder of a Category 1 defect within this timeframe, the BSA can not assist you if the builder does not rectify the problem.

Category 2 - Minor Defects

These are the defects that include hairline cracking of cornice, cracking paths & driveways, scratched surfaces and sticking doors or windows. The warranty period for these defects is 6 months from the date of "Practical Completion".

WHAT SHOULD YOU DO TO HAVE YOUR DEFECTS RECTIFIED?

Step 1 - Notify your builder

With any complaint, the first step is to raise it with the person responsible, in this case your builder. Assuming they have not gone broke, detail your complaint in writing outlining all of the defects you wish to have addressed. You may also like to provide the builder with independent reports from specialists, such as a structural engineer who may be able to identify defects that the untrained eye may not.

Provide your builder with a reasonable amount of time to be able to inspect the problems raised and respond accordingly, generally 14-28 days is appropriate. Some of the questions to ask in your correspondence include:

• What methods they intend to use to rectify the problems raised?
• In what timeframe do they expect to complete the problems raised?

If your builder has gone broke, there is an option which we will outline later in this article

Step 2 - Assess your builder's response

If you receive a response from your builder within the timeframe you have specified, assess their response to the matters you have raised. Some of the matters to consider may be:

• If they agree to rectify your issues, are you happy with the time frame they are proposing to take to rectify your problems?
• Have they agreed to rectify some, but not all, of your issues? Is this acceptable?
• Have they disputed the issues raised and refuse to rectify any of them?

If you are satisfied with their response and they make good on their promises then this is the best outcome for both parties. If you are not happy with their response, or they fail honour the promises made to rectify the issues raised then don't delay in moving directly onto Step 3.

Step 3 - Lodge a BSA Complaint Form

Should the builder's response be unsatisfactory or if they fail to honour the promises made to rectify the issues raised then don't hesitate to lodge a BSA Complaint Form. The BSA is there to provide a resolution service when communication breaks down.

The complaint form is very straightforward to complete and there are companies who are able to assist you with lodging the complaint form correctly to give you the best possible chance of being successful.

Provided that you have notified your builder of the Category 1 or 2 defects within the aforementioned timeframes, once the complaint form is lodged the BSA will review the documents provided and may conduct a site inspection. After the review and possible inspection the BSA inspector will decide whether the building work is:

• a category 1 or 2 defect - BSA will direct the contractor to rectify; or
• a category 1 or 2 defect but outside timeframes - no BSA assistance; or
• no defects evident - no BSA assistance

What if the contractor fails to rectify?

•  The contractor could be fined $2,000 on the spot and eventually have their license cancelled
•  Assessments will be made on whether a claim can be made under the BSA Warranty Insurance Scheme to have the defects rectified
•  BSA will seek to recover insurance costs from the contractor

BSA Warranty Insurance Scheme

When residential construction work is undertaken by a licensed contractor (in excess of $3,300) insurance is payable to BSA by the contractor. The insurance is designed to cover for any loss in the event:

• faulty or defective building work
•  non-completion (e.g. if a builder goes broke)
•  subsidence or settlement

It is important to note however that this insurance is not available for buildings over three (3) storey's in height.

In summary, the builders warranty is there to protect consumers. The BSA provides an effective resolution service should you not be satisfied with your builders response.

Remember:

• Communication is vital
• Notify your builder of the defects within the relevant timeframes for Category 1 & 2 defects
• Use specialist reports to provide you with advise and details on the specific details of the defects if required
• If your builder fails to respond to your correspondence - Lodge a BSA Complaint Form
• If you are not satisfied with the timeframe that your builder is taking to fix the problem - Lodge a BSA Complaint Form
• If you are not satisfied with the method being used to rectify a problem - Lodge a BSA Complaint Form