BUILDERS WARRANTY INSPECTION

The Pre 6 year Builders Warranty is a special building inspection of buildings prior to the 6 year and 3 month deadline for the claim.

QBM’s report is completed after an inspection of the building / complex to identify issues and faults that may be of a structural nature and which should be addressed to the builder for rectification. If satisfactory rectification is not completed by the builder, this report then is to be used in a submission to have the faults rectified.

The initial Building Condition Assessment Report, will be prepared in accordance with Australian Standard AS4349 – 1995 “Inspection of buildings”.

What is involved?

A complete inspection of the property and the identification of any building related faults / issues.
Identification of responsibility for the repairs.
A written report with full photographic evidence.

Should a satisfactory result not be reached with the builder after the initial 1st step, the process can proceed with the committees approval to the assessment of the warranty items, submission to the QBCC, meeting with the Builder/Developer and meeting with QBCC.

QBM’s inspectors are fully qualified to see the process through to the end on behalf of our clients and we even have court qualified inspectors to represent our clients.

More than 40 years experience and fully insured.

Directions to Builders and Insurance
The Queensland Building Services Authority Act (1991) is the legislation under which builders are licenses and regulated by the QBCC.  The regulation extends to ordering builders to rectify defective building work.  There ids an insurance scheme to fund alternative builders to carry out work where the original builder cannot or will not comply with a valid direction,

Does this apply to your scheme?
Any licensed builder can be required to comply with a direction issued by the QBCC.  There are important limitations on the ability to the QBCC to make a direction, and a builder can challenge whether it is a valid direction.  The insurance policy is only applicable to buildings having three (3) storeys or less (not including car parks).

How do you make a claim?
An individual owner can process their own claim by lodging the applicable form at the QBCC.  If there is a common property aspect to the problem, it’s necessary for all owners to consent to the QBCC dealing with the body corporate claim.

You must act promptly
Normally, the QBCC can’t issue a direction more than six (6) years and three 3) months after the building work was completed or left in an incomplete state (QBSAA, s72(8)).  It can extend this time period if there is good reason in the circumstances of a particular case.

It can only give directions in relation to ‘Category One’ defects within three (3) months of the defect becoming apparent and ‘Category Two’ defects within six 6) months after the building work was completed or left incomplete.

What is ‘Category One’

• It is faulty or unsatisfactory because it adversely affects the structural performance of a building;
• It adversely affects the health and safety of persons residing in or occupying the building;
• It adversely effects the functional use of the building; or
• It allows water penetration into the building.

What is ‘Category Two’

• If the work does not meet the reasonable standards of construction and finish or is a “settling in period defect” in a new building.  (BSA policy “Rectification of Building Work).

QBCC
Once the QBCC has a fully completed form, and this involves a reasonable degree of research by the claimant to identify who the builder is and when the work was carried out, the QBCC activates a dispute resolution process before moving to the formal processes of ordering a builder to carry out work. (QBSAAs71A)

No direction given
The QBCC will notify the complainant of its decision and its decision wither t give a direction or not is reviewable before the Commercial and Consumer Tribunal provided an application is made within 28 days of notification of the BSA decision.

The most common complaints lodges 03/04
Driveways/paths – concrete landscaping  – 263
Windows/door timber – install (joinery/finish) – 234
Roofed drainage (rainwater plumbing)  – 203
Footings (foundations)  – 194
Windows/door aluminium  – 184
Paint external – application (painting) – 170

18.5% of complaints led to directions (BSA Annual Report 03/04)

Should my body corporate manager know about this process?
Most body corporate managers will be aware of the processed under the legislation.  The CTIQ-registered managers have access to educational updates.

What should the committee do?

• Ensure all owners are aware of these processes
• Act promptly to notify the QBCC of defects in relation to common property
• Take legal advice promptly where there is an unsatisfactory result (the strict time frames for instituting an appeal from a QBCC decision is problematic considering that an EGM is required for approval of legal proceedings).

Contact Quality Building Management today to organize your Builders Warranty Inspection.